have a vehicle that I received $5200 in cash for

Outstanding loan of $4760.83

nbv = $1294.45

recl assets/accum deprec to Net gain

debited cash / credit nbv for $5200

debited Car loan / credited cash $4760.83 (check to pay off loan)

should have net loss of ($855) but have a gain on sale of 3905.55??

This sounds like homework. Is it?

No -- lord, been doing this for years but have just gone blank on how to net the loan balance on the car against the gain/loss...

Loss or gain is determined by what you paid for the car, not the loan balance.