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QUESTION
Which journal entries would be made by an insurance company in the following case A delivery vehicle which had cost $10,000 and accumulated...
Which journal entries would be made by an insurance company in the following case
A delivery vehicle which had cost $10,000 and accumulated depreciation of $3,000 was destroyed by fire. The insurance claim amounted to $5,000.
Delivery vehicleBefore:detailsInsurer (debtor)Accumulated depreciationLossDelivery vehicle debit$5,000$3,000$2,000 credit $10,000 Later:detailsBankInsurer debit$5,000 credit$5,000