XYZ CO. has a machine that cost $40,000 with a residual value of $5,000 and a useful life of 7 years. After 6 years of the the machine was estimated 20-year life and a cash price of $50,000. If a $11,000 trade-in allowance was received on the old machine trecomway should record a credit entry to loss on trade-in of 53000 e a credit entry to gain on trade-in of $1,000 e a credit to sales revenue of $1.000 a debit entry to toss on trade-in of 53,000 e a debit to an expense of $10,000