Record amortization expenses on the income statement under a line item called “depreciation and amortization.” Debit the amortization expense to increase the asset account and reduce revenue. Credit the intangible asset for the value of the expense.

How do you record amortization expense?

To record annual amortization expense, you debit the amortization expense account and credit the intangible asset for the amount of the expense. A debit is one side of an accounting record. A debit increases assets and expense balances while decreasing revenue, net worth and liabilities accounts.

Where does amortization expense go on the balance sheet?

The accumulated amortization account appears on the balance sheet as a contra account, and is paired with and positioned after the intangible assets line item. In some balance sheets, it may be aggregated with the accumulated depreciation line item, so only the net balance is reported.