Question

A patent has amortization this year of $2,300. The journal entry would be to:

A. debit amortization expense-patent, $2,300; credit patent, $2,300.

B. debit amortization expense-patent, $2,300; credit Accumulated Depreciation-patent, $2,300.

C. debit accumulated amortization-patent, $2,300; credit patent, $2,300.

D. debit accumulated amortization-patent, $2,300; credit amortization expense-patent, $2,300.

Answer 1

The correct journal entry to record a patent's amortization of $2,300 is to debit Amortization Expense-Patent and credit Patent, reflecting the reduction in the patent's value as an expense.

Step-by-step explanation:

When a patent has amortization for the year, the appropriate accounting treatment is to recognize it as an expense. The correct journal entry to record amortization expense of a patent for $2,300 would be:

• Debit Amortization Expense-Patent $2,300
• Credit Patent $2,300

This entry reflects that the value of the patent has decreased by $2,300 due to the amortization, and that this cost is now considered an expense for the company during the current accounting period. Therefore, the correct answer to this question would be A. debit amortization expense-patent, $2,300; credit patent, $2,300.