Hooper Retailing Ltd (Hooper) operates a high fashion store in the Sydney CBD. Unfortunately, trading conditions have been difficult as customers are increasingly shopping online and Hooper has experienced increasingly poor performance (i.e., there are indicators of impairment).

Below is Hooper’s balance sheet as at 30 June 2018.

Liabilities		Assets
Bank Overdraft	300,000	Cash	10,000
Accounts Payable	500,000	Accounts Receivable	200,000
		Inventory	700,000
Equity	510,000	Property Plant and Equipment - Net	300,000
		Goodwill	100,000
Total	1,310,000		1,310,000

Additional information

Hooper is a single cash generating unit.

The ‘value in use’ of the assets is estimated to be $1,050,000. Separately, an offer to purchase the company (all assets and liabilities) has been received from Pocock Limited for $310,000 immediately before 30 June 2018.

The accounts receivable relate to longstanding customers and it is expected that $195,000 will be recoverable.

Required

Prepare Journal entries to recognize the asset impairment required on 30 June 2018.