On July 1, 2020, Sheffield Corporation purchased the net assets of Soorya Company by paying $426,000 cash and issuing a $52,300 note payable to Soorya Company. At July 1, 2020, the statement of financial position of Soorya Company was as follows:

Cash

$74,300

Accounts payable

$315,500

Accounts receivable

118,000

Soorya, capital

231,000

Inventory

98,800

Total

$546,500

Land

51,100

Buildings (net)

74,300

Equipment (net)

80,100

Trademarks (net)

49,900

Total

$546,500

The recorded amounts all approximate current values except for land (worth $58,500), inventory (worth $138,900), and trademarks (worthless). The receivables are shown net of an allowance for doubtful accounts of $11,000. The amounts for buildings, equipment, and trademarks are shown net of accumulated amortization of $22,000, $24,000, and $50,000, respectively.

Prepare the July 1, 2020 entry for Sheffield Corporation to record the purchase. (Credit account titles are automatically indented when the amount is entered.Do not indent manually.)