Aldo Deliveries trades-in a van for $22,000 cash. The van originally cost $25,000 and its...
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Aldo Deliveries trades-in a van for $22,000 cash. The van originally cost $25,000 and its carrying amount is $16,000. GST is payable on the sale. What are the correct journal entries? Debit Accounts Payable $22,000; Debit Accumulated depreciation of van $9,000; Credit Van $25,000; Credit GST $2,000; Credit Gain on sale $5,000 Debit Accounts Payable $22,000; Debit Accumulated depreciation of van $10,000; Credit Van $25,000; Credit GST $5,000; Credit Gain on sale $2,000 Debit Accounts Payable $20,000; Debit Accumulated depreciation of van $10,000; Debit GST $2,000; Credit Van $22,000; Credit Gain on sale $5,000 Debit Accounts Payable $22,000; Debit Van $25,000; Credit Accumulated depreciation of van $10,000; Credit GST $2,000; Credit Gain on sale $5,000
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