Game Company's Computer Was Destroyed by Fire

question 124

Essay

Game Company's computer was destroyed by fire.The computer originally cost $6,000,and accumulated depreciation to the date of the fire was $1,900.The company received $2,000 from an insurance policy that covered the computer and will use that money to help pay for a new computer.Prepare the general journal entry to record the loss of the computer and the receipt of cash from the insurance company.

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Definitions:

Repeat Buyers

Consumers who make multiple purchases from the same brand or vendor, demonstrating brand loyalty or satisfaction with the product or service.

Industry Wide Markets

Markets that span across an entire industry, affecting all organizations within that industry.

Low-Cost

Describes products or services offered at a price lower than the market average to attract cost-sensitive consumers.

Differentiation

Relates to distinguishing or creating differences between products, services, or organizational entities to create a competitive advantage.