My client purchased a salon for $120K (per sales agreement: $10k inventory, $50k FF&E, $60k goodwill). They put 20k down and financed the remaining 100k with seller carrying the note. What's the best way to record this (J/E)? Also, after physical evaluation of FF&E and inventory (they did not do this prior to purchase), the actual values are less than $60k, closer to around $20k. Can you allocate the difference to goodwill or just stick with original figures since that's what's on the official sale agreement?
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