Question 6

Blue Corporation incurred the following costs in 2025.

Cost of laboratory research aimed at discovery of new knowledge		$185,000
Cost of testing in search for product alternatives		100,000
Cost of engineering activity required to advance the design of a
product to the manufacturing stage		222,000
		$507,000

Prepare the necessary 2025 journal entry for Blue. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount