On January 2, 2016, Sweet Pet purchased fixtures for $ 36,400 cash, expecting the fixtures to remain in service for eight years. Sweet Pet has depreciated the fixtures on a straight-line basis, with $ 10,000 residual value. On August 31, 2018, Sweet Pet sold the fixtures for $ 21,600 cash. Record both depreciation expense for 2018 and sale of the fixtures on August 31, 2018. (Assume the modified half-month convention is used. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
-Begin by recording the depreciation expense as of Aug. 31, 2018.
-Before recording the sale of the fixtures, let's calculate any gain or loss on the sale of the fixtures. (Enter a loss with a minus sign or parentheses.)
-now record the sale of the fixtures on Aug. 31, 2018