Exercise 7.17 Saxon Ltd conducted an impairment test at 30 June 2016. As a part of that exercise, it measured the recoverable amount of the entity, considered to be a single cash-generating unit, to be $217,700. The carrying amounts of the assets of the entity at 30 June 2016 were: Equipment 201,000 Accumulated depreciation 140,000) Patent 40,000 Goodwill 6,400 Inventories 31,000 Receivables 1,600 The receivables held by Saxon Ltd were all considered to be collectable. The inventories were measured in accordance with AA53 102/IAS 2 Inventories. For the period ending 20 June 2019, the depreciation charge on equipment was $14,780. If the plant had not been impaired the charge would have been $20,000. At 30 June 2019, the recoverable amount of the entity was calculated to be $10,400 greater than the carrying amount of the assets of the entity. As a result, Saxon Ltd recognised a reversal of the previous year's Impalrment loss. Required Prepare the journal entries accounting for the impairment loss at 30 June 2018 and the reversal of the impairment lass at 30 June 2019. (Round your final answers to the nearest whole number. Enter debit entries first, followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not Indent manually.) At 30 June 2018, the journal entry to record the impairment is: Account and explanation Debit Credit The reversal is then accounted for as follows: Account and explanation Debit Credit Question Attempts: 0 of 1 used SUBMIT