E$7-14($Algo$)$ Recording the Disposal of an Asset and Financial Statement Effects LO$7-5$

FedEx Corporation is a global leader in express distribution. It has the world's largest fleet of all$-$cargo aircraft and thousands of vehicles, trailers and electric$-$powered autonomous delivery robots $($bots$)$ and drones to pick up and deliver packages. These bots and drones are used primarily for the "last mile $($or kilometre$)$ of delivery" in the most environmentally sustainable and cost$-$effective way. Assume that FedEx sold some of its robots as part of a modernization process. The bots had been used in the business for three years. The records of the company reflect the following $($in millions$)$:

Fleet of electric powered, autonomous delivery $$46$ bots

Accumulated depreciation

$34$

Required:

Prepare the journal entry to record the disposal of the fleet of bots and the related transaction effects, assuming that the sales price was $($a$)$ $$12,($b$)$ $$13,$ or $($c$)$ $$10.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

$1$

$23$

Record the disposal of the truck assuming that the sales price was $$12.$