Exchanged a display case put in service on 1 April, 2 years prior (original cost $21000, $0 salvage value) for a new display case, list price $25000; terms FOB, destination. The trade-in allowance was $18000 and the balance due of $7000 was paid in cash.   Freight costs are $65 and insurance in transit was $45. Display cases are classified as Store and Office Equipment.   The estimated useful life of both old and new cases is 10 years.   Record this transaction in the GJ.   Hint: the cost of the new equipment is $25000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exchanged a display case put in service on 1 April, 2 years prior (original cost $21000, $0 salvage value) for a new display case, list price $25000; terms FOB, destination. The trade-in allowance was $18000 and the balance due of $7000 was paid in cash.   Freight costs are $65 and insurance in transit was $45. Display cases are classified as Store and Office Equipment.   The estimated useful life of both old and new cases is 10 years.   Record this transaction in the GJ.   Hint: the cost of the new equipment is $25000. 

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