purchased a fax machine of 1800.had a useful life of 3yrs & a salvage value of 300.use DDB depreciation method. Company offered to buy the fax machine for 1000.( proceeds received upon purchase)

purchased fx machine 1800. Useful life of 3 yrs.salvage value of 300. Another company offered to buy the fx machine for 1000.(proceeds received upon purchase) which accounts do I use to post in the journal?

The accounts you'll use are

• Cash
• Accumulated Depreciation
• Fixed Assets - Fax machine (or some similarly-titled fixed asset acct)
• Gain or Loss on Sale

You already know the cash and fixed assets amounts for the entry. For the others, it'll depend on when the asset was sold--i.e. how much depreciation had been taken up to the date of the sale.