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A customer list is information about customers, such as their name and contact information, or a database that includes other information about customers, such as
A customer list is information about customers, such as their name and contact information, or a database that includes other information about customers, such as their order history and demographic information. This information is useful for improving the effectiveness of sales and marketing efforts. Accounting for customer lists most commonly occurs in a business combination, or when an entity purchases lists from another company. A logistics company acquired a customer list from a competitor in the past valued at $2.5 million on 1 January 2014 . The customer list is a database that includes customer names, contact information, order histories, and demographic information. The Company expects future economic benefits for five years based on the information in the list. Required: You need to make accounting treatment including explanation for transaction above
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