Problem 1: Gaston owns equipment that cost $32,000 with accumulated depreciation of $22,400. Gaston sells the equipment for $8,600. Which of the following would not be part of the journal entry to record the disposal of the equipment?
Multiple Choice
Option 1: Debit Loss on Disposal of Equipment $1,000.
Option 2: Credit Equipment $32,000.
Option 3: Debit Cash $8,600.
Option 4: Debit Accumulated Depreciation $22,400.
Option 5: Credit Gain on Disposal of Equipment $1,000.