On January$1$st$,2021,$ ABC Hotel purchased a new fitness centre equipment for $$120,000.$ The company expects to utilize the equipment for the next $20$ years and estimate that it will have a residual value of $$20,000.$ ABC uses the straight$-$line method to account for depreciation. What is the adjusting entry required on December $31$st$,2021,$ the year$-$end date, to record any yearly accrued expenses on the factory?

Select one:

a$.$ Debit Depreciation expense $$6,000$; Credit Property & Equipment $$6,000$

b$.$ Debit Depreciation expense $$5,000$; Credit Accumulated Depreciation $$5,000$

c$.$ Debit Accumulated Depreciation $$5,000$; Credit Depreciation expense $$5,000$

d$.$ Debit Depreciation expense $$6,000$; Credit Accumulated Depreciation $$6,000$