Why is this account listed as an asset if it has a credit balance?

Because it belongs physically in the asset section of the balance sheet, right next to Equipment, so the two together show net book value. Functionally it behaves as a contra-asset, moving opposite to a normal asset.

Where does the depreciation expense itself get recorded?

In 6800 Depreciation Expense — the account this chart ships specifically for that purpose. A depreciation entry debits 6800 and credits this account for the same amount.

1510assetNormal balance: Debitbusiness

1510 — Accumulated Depreciation

This account is the most likely one in the chart to look like a mistake at first glance, so it is worth explaining plainly. Accumulated Depreciation is typed as an asset because it sits in the asset section of the balance sheet, directly under Equipment. But it is a contra-asset, carrying a natural credit balance, opposite of every ordinary asset account.

Here is what that means in practice: as equipment ages, a credit to this account (not a debit) records the depreciation taken against it. The balance grows more negative-relative-to-Equipment over time, and when shown next to the original purchase cost in Equipment (1500), it reduces that cost down to the equipment's net book value — what it is worth on paper today, after years of wear.

The offsetting debit for a periodic entry lands in 6800 Depreciation Expense, the expense account built specifically for this purpose. Every depreciation entry touches both: 6800 for the current period's cost, 1510 for the running total that reduces Equipment down to book value.

What belongs here

the running, cumulative depreciation taken against Equipment over its life
a periodic depreciation entry recorded on a schedule (monthly, quarterly, or annually)
an adjustment when a piece of equipment becomes fully depreciated
a reduction to this account when a depreciated asset is disposed of or sold

What does not belong here

the original purchase price of equipment — that stays in Equipment (1500) and never moves here
a one-time loss or gain on the sale of an asset — that is a different kind of entry, worth a conversation with an accountant when it happens
a loan taken out to buy the equipment — that is a separate liability (2700), unrelated to how the asset wears down
ordinary repairs that keep equipment running rather than reflecting its long-term wear — Repairs & Maintenance (6350)

Where it shows up

Shown directly beneath Equipment on the balance sheet, net of it, to arrive at book value. It is the one account in the asset section that carries a credit balance instead of a debit balance — worth remembering when a report shows it as a negative-looking number next to other assets.

Common questions

Why is this account listed as an asset if it has a credit balance?: Because it belongs physically in the asset section of the balance sheet, right next to Equipment, so the two together show net book value. Functionally it behaves as a contra-asset, moving opposite to a normal asset.
Where does the depreciation expense itself get recorded?: In 6800 Depreciation Expense — the account this chart ships specifically for that purpose. A depreciation entry debits 6800 and credits this account for the same amount.