The journal entry to record depreciation expense on an equipment - we debit the depreciation expense. True False
Question
The journal entry to record depreciation expense on an equipment - we debit the depreciation expense. True False
Solution
True. When recording depreciation expense on equipment, we debit the depreciation expense account. This increases the expense account and reduces the net income. At the same time, we credit accumulated depreciation, which is a contra asset account that reduces the value of the equipment on the balance sheet.
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