When a fixed asset is disposed off, the accounting entries to write off the asset are Debit
The correct answer is C. Asset disposal account, credit asset account
How to record the disposal of assets
No proceeds, fully depreciated. Debit all accumulated depreciation and credit the fixed asset.
Loss on sale. Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of assetaccount, and credit the fixed asset.
Gain on sale.
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