When there is a decrease in delivery equipment, how should it be recorded?

When delivery equipment decreases, it is appropriate to record a credit to assets. This is because assets represent resources owned by a business, and a decrease in delivery equipment indicates that the value of those resources has diminished. In accounting, a credit entry is used to decrease asset accounts. This could occur through the sale of the equipment, disposal, or depreciation, reflecting a reduction in the overall asset base of the company.

When the delivery equipment is no longer a part of the assets, the accounting records must accurately reflect this change. By crediting the assets, you are effectively showing that the asset's value in the accounting records is being reduced, which is essential for maintaining an accurate financial position of the business.