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10y ago

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What is the journal entry to write off patent?

debit retained earnings/cash / bankcredit patent account


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This can be read two ways. Why the government? Because the patent process requires examination (to see if a new application is a duplicate of a previous patent), it needs to be handled by a centralized body. In the US, the Patent and Trademark Office is part of the Department of Commerce, which enables international dialog as well. Why issue patents? To protect creators and researchers, and to encourage them to develop more products and processes by allowing them to derive an income from their creative output.


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