Answered

On December 31, 2021, Bates Company had on their books an assembly machine that was purchased for $392,000 and had accumulated $352,800 in depreciation. On April 1, 2022, Bates Company sold the machine for $40,000. On the date of the sale, they recorded the following journal entry:
Cash $40,000
Accumulated Depreciation- Equipment $352,800
Equipment $392,000
Gain on Disposal of Plant Assets $800
What error did Bates Company make in this journal entry?
-They credited a gain account rather than a revenue account.
-They recorded a gain on disposal rather than a loss on disposal.
-They did not account for a partial year of accumulated depreciation.
-They credited Gain on Disposal of Plant Assets rather than debiting it.

Answer :

The correct option for this question is C.

They did not account for a partial year of accumulated depreciation.

The accumulated depreciation account is a contra resource account on an organization's monetary record. It addresses a credit balance. It shows up as a decrease from the gross measure of fixed resources revealed. Accumulated depreciation determines the aggregate sum of a resource's wear to date in the resource's helpful life.

How much accumulated depreciation for a resource or gathering of resources will increment over the long haul as depreciation expenses keep on being recorded. At the point when a resource is in the end sold or put out of purpose, the accumulated depreciation related with that resource will be switched, wiping out all records of the resource from the organization's asset report.

to know more about the depreciation click here:

https://brainly.com/question/1203926

#SPJ4

Other Questions