An acquirer made the following entry to report an acquisition:

 

		Debit	Credit
Tangible assets		4,000
Customer lists		600
Goodwill		1,000
	Liabilities		2,000
	Cash		3,600

Six months after the acquisition, the customer lists are determined to be worthless.

Using a T-account template:

Document the acquisition entry 

Prepare the entry to recognize that the customer lists are deemed worthless and label it “b”.

Answer rating: 100% (QA)

JOURNAL ENTRIES IN THE BOOK OF ACQUIRER DATE PARTICULAR DEBIT CREDIT DATE OF ACQUIS... View the full answer