Rightz Petroleum Products owns furniture that was purchased

Rightz Petroleum Products owns furniture that was purchased for $20,000. Accumulated depreciation is $16,000. The furniture was sold for $3,800. Prepare the journal entry to record this transaction.

Solution

Journal entry for sale of Furniture Accumulated depreciation-Furniture Dr. 16000 Cash account 3800 Loss on sale of assets Account Dr. 200       Furniture account 20000
 Rightz Petroleum Products owns furniture that was purchased for $20,000. Accumulated depreciation is $16,000. The furniture was sold for $3,800. Prepare the jo

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