Problem:
Foster Glass Company purchased a fax machine on July 1, 2007 for $1,800. The fax machine had an estimated useful life of three years and a salvage value of $300. Assume Foster uses the straight-line depreciation method.
Foster decided to replace its fax machine with a bizhub on July 1, 2008, Eagle Outfitters offered to buy the used fax machine from Foster for $1,000 (proceeds received upon purchase)
Record on Foster's books the July 1, 2008 journal entry detailing the sale of the fax machine to Eagle.