Accounting Question

So the customer list is an (intangible) Asset here.

Initially you'd record a liability (Credit Note Payable) and an Asset (Debit Customer List, Intangible).

Everytime you make a payment on the note you'd decrease the liability (Debit Liability) and decrease Asset (Credit Cash).

Elect a time-frame in which to amortize the intangible over useful life and write down the asset every year over a straight line. (Debit Amortization Expense, Credit Asset)

This is the GAAP side of it. Tax side maybe a bit different in the treatment of intangibles (so only the amort expense amount would change). Although I think its the same, someone else can confirm.

15 year amortization for tax purposes.

Note must also bear interest or you must impute interest on note.