Oriole Company retires its delivery equipment, which cost $53,990. Accumulated depreciation is also $53,990 on this delivery equipment. No s

Oriole Company retires its delivery equipment, which cost $53,990. Accumulated depreciation is also $53,990 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,080 instead of 53,990.

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  1. Answer:

    Please see the answer below:

    Explanation:

    (a)

    Debit: Accumulated Depreciation     $53,990

    Credit: Delivery Equipment                              $53,990

    To record disposal of delivery equipment.

    (b)

    Debit: Accumulated Depreciation      $37,080

    Debit: Loss                                             $16,910

    Credit: Delivery Equipment                               $53,990

    To record Loss on disposal of Delivery Equipment.

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