Which of the following is a correct entry for recording depreciation expense of

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Question: Which of the following is a correct entry for recording depreciation expense of $2,000?

Options:

Correct Answer: Debit Depreciation Expense $2,000, Credit Accumulated Depreciation $2,000

Solution:

The correct entry is to debit Depreciation Expense and credit Accumulated Depreciation.

Which of the following is a correct entry for recording depreciation expense of $2,000?

Which of the following is a correct entry for recording depreciation expense of $2,000?

Step 1: Understand that depreciation expense is the cost of using an asset over time.
Step 2: Know that when recording depreciation, you need to make two entries: one for the expense and one for the accumulated depreciation.
Step 3: Debit the Depreciation Expense account by $2,000. This increases the expense on the income statement.
Step 4: Credit the Accumulated Depreciation account by $2,000. This increases the total depreciation on the balance sheet.

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