A patent has amortization this year of $2,300. The journal entry would be to:
A)debit amortization expense-patent, $2,300; credit Accumulated Depreciation-patent, $2,300.
B)debit accumulated amortization-patent, $2,300; credit patent, $2,300.
C)debit amortization expense-patent, $2,300; credit patent, $2,300.
D)debit accumulated amortization-patent, $2,300; credit amortization expense-patent, $2,300.

Question

Quizplus · Accepted Answer

The correct journal entry for patent amortization is to debit amortization expense-patent and credit patent for the same amount. Option A is incorrect because it credits Accumulated Depreciation-patent instead of debiting Patent. Option B is incorrect because it debits Accumulated Amortization-patent instead of Amortization expense-patent. Option D is incorrect because it would result in a credit balance in Amortization expense-patent account, which is not appropriate.

A Patent Has Amortization This Year of $2,300