Accounting · Disposal of Assets
During the year, Ali made the following incorrect accounting entries to record the cash proceeds received upon disposal of an item of machinery: Debit Bank $2,500 Credit Sales revenue $2,500 What journal entry is required to correctly rectify the recording of disposal proceeds?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Debit Sales revenue $2,500, and Credit Disposal of machinery $2,500✓
- 2Debit Disposal of machinery $2,500, and Credit Machinery asset $2,500
- 3Debit Sales revenue $2,500, and Credit Bank $2,500
- 4Debit Accumulated depreciation $2,500, and Credit Disposal of machinery $2,500
Correct answer
Debit Sales revenue $2,500, and Credit Disposal of machinery $2,500
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