On October 1,2018,Natural Company Purchased a Patent for $100,000 Cash

question 32

Essay

On October 1,2018,Natural Company purchased a patent for $100,000 cash.Although the patent gives legal protection for 20 years,it is expected to be used for only eight years.Journalize the purchase of the patent.Omit explanation.

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Definitions:

Weighted Average

A method used to calculate the average cost of inventory that takes into account the varying costs of different batches of goods by weighting each batch by its proportion in the total inventory.