Can anyone help break down how each answer is configured? I don't get how LOSS is calculated. Please show work :)

Also the reason why each transaction is a debit and credit.

Abbott Landscaping purchased a tractor at a cost of $40,000 and sold it three years later for $20,300. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $2,500 residual value. Tractors are included in the Equipment account. 2. Assume the tractor was sold for $12,700 instead of $20,300. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the sale of equipment. Note: Enter debits before credits. Transaction General Journal Credit : Cash Debit 12,700 22,500 4,800 Accumulated Depreciation Loss Equipment 40,000