Blue Spruce Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $37,500 (cost $68,000 less accumulated depreciation $30,500). Its fair value is $23,800, and cash of $6,700 is paid. Prepare the entry to record the exchange, assuming the transaction has commercial substance. (List all debit entries before credit entries. Credit account titles are automatically Indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Include In your journal entry separate account entries for both the new and old equipment.) Account Titles and Explanation Debit Credit

Blue Spruce Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $37,500 (cost $68,000 less accumulated depreciation $30,500). Its fair value is $23,800, and cash of $6,700 is paid. Prepare the entry to record the exchange, assuming the transaction has commercial substance. (List all debit entries before credit entries. Credit account titles are automatically Indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Include In your journal entry separate account entries for both the new and old equipment.) Account Titles and Explanation Debit Credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...

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