Foster Glass Company purchased a fax machine on July 1, 2007 for $1,800. The fax machine had an estimated useful life of three years and a salvage value of $300. Assume Foster uses the straight-line depreciation method.
Foster decided to replace its fax machine with a Bizhub on July 1, 2008, Eagle Outfitters offered to buy the used fax machine from Foster for $1,000 (proceeds received upon purchase)
Record on Foster's book the July 1, 2008 journal entry detailing the sale of the fax machine to Eagle.
(Accts. Rec., Accumulated Dep., Cash, Depreciation Exp., Equipment, Insurance Exp., Interest Exp. , Interest Pay., Loss on Disposal of Fixed Assets, Service Revenue, Supplies, Supplies Exp.)