Rightz Petroleum Products Owns Furniture That Was Purchased for $20,000

question 55

Essay

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

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Definitions:

Indirect Salaries

Salaries for employees who do not directly work on the production of products or services but support those who do.

Basis of Sales

The underlying foundation or principle for recognizing revenue from sales transactions in accounting records.

Departmental Accounting System

This system allows for accounting and financial reporting to be done separately by departments within an organization, facilitating more specific financial oversight.

Cost Center

A department or function within an organization where its costs are accumulated, but it does not directly generate revenue.