Libby and Ann agreed that if their expansion of Sweet Tooth into the food truck

Q: Libby and Ann agreed that if their expansion of Sweet Tooth into the food truck

(A)Loss, (B) $1,000 Libby and Ann would record a (A) loss on the sale of the truck, in the amount of $ (B) 1,000. On sale of the Food Truck; Bank Account Dr. $30,000 Accumulated Dep. A/c Dr. $ 4,000 Loss on Sale of Food Truck A/c Dr. $ 1,000 To Food Truck Account $35,000

ID: 2459170 • Letter: L

Question

Libby and Ann agreed that if their expansion of Sweet Tooth into the food truck market this summer didn’t go well, they could sell the food truck. They predicted they could sell the food truck in the fall for $30,000. Before selling the truck, the accumulated depreciation account would be brought up to date, showing a total of $4,000. The truck's original cost was $35,000.

Given this example, Libby and Ann would record a (A) __________ on the sale of the truck, in the amount of $ (B) __________.

Explanation / Answer

(A)Loss, (B) $1,000

Libby and Ann would record a (A) loss on the sale of the truck, in the amount of $ (B) 1,000.

On sale of the Food Truck;

Bank Account Dr. $30,000

Accumulated Dep. A/c Dr. $ 4,000

Loss on Sale of Food Truck A/c Dr. $ 1,000

To Food Truck Account $35,000

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Libby and Ann agreed that if their expansion of Sweet Tooth into the food truck

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