During the current year, a company exchanged an old truck costing $58,000 with a

Question

During the current year, a company exchanged an old truck costing $58,000 with accumulated depreciation of $52,000 for a new truck. The new truck had a cash price of $80,000 and the company received a trade-in allowance on the old truck with the balance of $64,000 paid in cash.

Assuming this transaction has commercial substance, in the journal entry to record the exchange, hat amount will be debited or credited to the new truck account? (Be sure to only type in the amount. Do not include $, commas, or decimal points.)

Explanation / Answer

The new truck account will be debited by 80000

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.