Here’s a question I ran into this past week involving the journal entry for the disposition (write-off) of a fixed asset < $1,000 that still has a small residual UCC left at the end of the previous year.
The default journal entry to dispose this fixed class items if it was by itself in the class is:
- Accumulated Amortization: (Debit) 550
- Loss on Disposition Expense: (Debit) 50
Original Cost: (Credit) 600
Since this item is less than $1,000 and there are other items in the class, it doesn’t seem right to record a Loss on Disposition Expense.
Is there a better way to record this journal entry to account for this ending UCC balance that is used as a disposition price?