On April 1 of the Current Year,a Company Disposed of a Truck

question 94

Essay

On April 1 of the current year,a company disposed of a truck that had cost $20,000.The truck had a salvage value of $2,000,and a useful life of 5 years.The accounting records showed accumulated depreciation for this truck of $8,100 as of April 1 of the current year.The asset was discarded after an accident,and $10,500 cash was received from an insurance claim.Prepare the journal entry to record the disposal of the truck.

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Definitions:

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Negatively Worded

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Semantic Differential

A scale used for measuring the meaning of things and concepts, typically involving polar adjectives.