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    futurecpa's Avatar
    futurecpa Posts: 1, Reputation: 1
    New Member
     
    #1

    Mar 6, 2014, 02:17 PM
    Do you prepare reversing entry for patent amortization?
    The company holds a patent on a toy which is amortized during year-end adjustments. The $25,000 patent's economic life is 10 years although the legal life is 20 years.

    My adjusting entry:

    Patent Amortization 2,500
    Patent 2,500

    My reversing entry:

    Patent 2500
    Patent Amortization 2500
    Fidget1's Avatar
    Fidget1 Posts: 105, Reputation: 4
    Junior Member
     
    #2

    Mar 7, 2014, 11:32 AM
    No, you don't do a reversing entry for amortising/depreciating anything.

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