Answer:
A debit to Depreciation Expense
A credit to Accumulated Depreciation
Depreciation Expense $2000
Accumulated Depreciation $2000
Explanation:
The purpose of depreciation is to achieve the matching principle of accounting. That is, a company is attempting to match the historical cost of a productive asset to the revenues earned from using the asset. It is difficult to precisely match the contribution of the asset to a company's revenues, so the asset cost is designated to the years in which the asset is used.
The accounting entry is:
A debit to Depreciation Expense
A credit to Accumulated Depreciation
Depreciation Expense $2000
Accumulated Depreciation $2000
