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On July 9, 2019, Blane's purchased a truck for $27,000 with a $2,000 salvage value, is...

On July 9, 2019, Blane's purchased a truck for $27,000 with a $2,000 salvage value, is expected to last five years & 40,000 miles. Usethe partial year convention to depreciate fractional periods and straight-line.   Note: you may not require all the given information to solve.                                                                      

If the truck was sold December 31, 2020 for $17,000, what is the required journal entry to record the sale.

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Answer #1

Journal entry

Date account and explanation Debit Credit
Dec 31 Cash 17000
Accumulated depreciation-Truck (27000-2000)/5*1.5 7500
Loss on sale of truck 2500
Truck 27000
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