ECONOMICS

Detailed explanation-1: -The basic journal entry for depreciation is to debit the Depreciation Expense account (which appears in the income statement) and credit the Accumulated Depreciation account (which appears in the balance sheet as a contra account that reduces the amount of fixed assets).

Detailed explanation-2: -Manufacturing overhead would be debited to record the depreciation of manufacturing equipment.

Detailed explanation-3: -Depreciation expense is a debit entry (since it is an expense), and the offset is a credit to the accumulated depreciation account (which is a contra account).

Detailed explanation-4: -Each year, the depreciation expense account is debited, expensing a portion of the asset for that year, while the accumulated depreciation account is credited for the same amount. Over the years, accumulated depreciation increases as the depreciation expense is charged against the value of the fixed asset.