An asset sales journal entry is a record of the sale of an asset, such as land or machinery. It is typically made up of two parts: the debit to recognize the value of the asset that was sold and the credit to recognize the cash or receivable that was received. This entry is used to keep records of all sales transactions, in order to accurately track profits and losses. By understanding this journal entry process, businesses can better manage their finances, document compliance with applicable laws, and ensure that they receive adequate compensation for any transaction.