Answer: For an explanation, please refer to the explanation section
Explanation:
recording a journal entry for Patel Products selling a delivery van priced at $20,000 with accumulated depreciation totaling $18,000, while receiving $2,000 cash from the buyer, results in:
December 29, 2019
Account title----- Cash----------Debit $2,000
Account title----Accumulated Depreciation-----Debit $18,000.
Account title------Delivery Van ----Credit $20,000
The equipment's book value at the sale was $2,000, reflecting its original cost of $20,000 adjusted by the accrued depreciation of $18,000. Since Patel received the same $2,000 from the sale of the delivery van, there is no profit from the disposal.
