Aye Company's Computer Was Destroyed by Fire

Essay

Aye Company's computer was destroyed by fire.The computer originally cost $5,000,and accumulated depreciation to the date of the fire was $900.The company received $2,000 from an insurance policy that covered the computer and will use that money to help pay for a new computer.Prepare the general journal entry to record the loss of the computer and the receipt of cash from the insurance company.