Wallace Company Had a Building That Was Destroyed by Fire

Essay

Wallace Company had a building that was destroyed by fire.The building originally cost $650,000,and its accumulated depreciation as of the date of the fire was $300,000.The company received $320,000 cash from an insurance policy that covered the building and will use that money to help rebuild.Prepare the single journal entry to record the disposal of the building and the receipt of cash from the insurance company.