A company sells a fixed asset (equipment) for $30,000. The asset originally cost $80,000 and had accumulated depreciation of $55,000 at the time of the sale. Select the journal entry to recognize the sale.
Debit Cash $30,000 Debit Accumulated Depreciation $55,000 Credit Equipment $80,000 Credit Gain on Disposal of Equipment $5,000
None of the options are correct
Debit Cash $30,000 Credit Equipment $30,000
Debit Cash $30,000 Debit Accumulated Depreciation $55,000 Debit Loss of Disposal of Equipment $5,000 Credit Equipment $90,000.