Adelphi Company owns equipment with an original cost of $60,000 and an accumulat

Question

Adelphi Company owns equipment with an original cost of $60,000 and an accumulated depreciation value of $25,000. The estimated residual value remains $5,000. Consider each of the independent situations below and present the required journal entry to record the sale or disposal of the truck using proper format. Sold for $30,000 Sold for $36,000 Sold for $25,000 Destroyed in a fire; no scrap value and no insurance (no proceeds will be received) Mosaic Art Company uses the direct write off method. Their customer, Tile Depot, has declared bankruptcy with no assets to pay off creditors. Present the journal entry, in proper format to record the necessary adjustment for the $27,000 remaining in the Accounts Receivable Subsidiary ledger from Tile Depot.

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Q3)

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Date Particulars Amount Dr Amount Cr XXXXX Bank          30,000 Loss on Sale of Equipment            5,000 Accumulated depreciation          25,000 Equipment          60,000 (Being eqipment sold for less than book value)

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