1. The patent was purchased at the beginning of 2019. The patent is valid for 4 years from purchase, but Johnny believes the IP it protects will be relevant for 7 years from purchase. Record amortization for 2019.
2. A customer with an outstanding receivable balance of $1,200 has skipped bail and will not be paying its receivable.
3. Bring the value of the allowance for doubtful accounts to $1,000.
4. Prepaid rent was paid at the beginning of 2019 for 3 years.
5. Delivered $4,000 of services previously paid for by customers.
6. Johnny changes the depreciation calculation for the machine on the TB. He expects the machine to be good for another 5 years with a salvage value of $4,000. Record depreciation expense.

2. Record the AJEs for 2019: