I Posted this question Already but the answer I got was unclear so I was hoping this can be answered more clearly this time.

Problem #4 Caitlynburger Entertainment was acquired by RM Wino on May 16, 2021. After the close of Caitlynburger's books and the payment/distribution of cash the following balances remained: Accounts receivable Notes receivable Discount on notes receiavble Allowance for doubtful accounts Inventory Prepaid real estate taxes Supplies Property Plant & Equipment Accumulated depreciation - PP&E Accounts payable Notes payable - Scrooge National Bank 1,350,000 150,000 12,000 32,000 1,550,000 38,000 32,000 3,750,000 865,000 235,000 3,262,000 RM Wino purchased all of the above assets and agreed to assume the liabilities of Caitlynburger Entertainment. Careful examination of Caitlynburger's books and assets and liabilities revealed the following: 3 4 1 $7,000 of the supplies were deemed unusable 2 An unrecorded late payment penalty of $1,500 had been assessed relative to real estate taxes The discount on notes receivable had been calculated incorrectly and required an increase of $2,000 The allowance account was insufficient - an aging analysis was performed and it was agreed that the allowance account should be increased by $35,000 and that $20,000 of the receivables were completely worthless. 5 The parties agreed to a physical inventory with FIFO costs assigned to goods on hand. As a result it was determined that $17,000 of inventory was damaged to the extent of being worthless and the remaining inventory was valued at $1,725,000 The Property, Plant and Equipment was appraised at $4,825,000. Included in this category is real estate which had a fair value substantially greater than the book value. 7 Accounts payable per Caitlynburger's books did not include payables of $32,000 which Caitlynburger acknowledged as valid claims. Caitlynburger agreed to sell the company to RM Wino for $4,800,000. RM Wino paid $3,800,000 cash and issued a 5% note for $1,000,000 6 Instructions Prepare the entry to record the purchase of Caitlynburger Ent. on the books of RM Wino