equal installments every December 31, evidenced by a 12% promissory note. The On January 1, 2019, Candy Factory sold a franchise to sell its product for P5M. The initial fee is P500,000 upon signing the contract and the balance is payable in 5 a
equal installments every December 31, evidenced by a 12% promissory note. The On January 1, 2019, Candy Factory sold a franchise to sell its product for P5M. The initial fee is P500,000 upon signing the contract and the balance is payable in 5 a
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 15EA: Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise....
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Question
100%
![equal installments every December 31, evidenced by a 12% promissory note. The
On January 1, 2019, Candy Factory sold a franchise to sell its product for P5M. The
initial fee is P500,000 upon signing the contract and the balance is payable in 5
d.
On January 1, 2019, Candy Factory sold a franchise to sell its product for PoMin 5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bd4afd0-7ae3-4c4f-af3c-a5998e6a76e3%2F1f78c65f-85ea-461c-b0d1-8e91c649b99d%2Fysw9zor_processed.jpeg&w=3840&q=75)
Transcribed Image Text:equal installments every December 31, evidenced by a 12% promissory note. The
On January 1, 2019, Candy Factory sold a franchise to sell its product for P5M. The
initial fee is P500,000 upon signing the contract and the balance is payable in 5
d.
On January 1, 2019, Candy Factory sold a franchise to sell its product for PoMin 5
![agreements provides that the franchisor will assist in the location of site
supervision of the building construction, project study or market survey,
assistance in the acquisition of facilities, training and management of personnel,
quality control, advertising and promotion.
On December 31, 2019, Candy Factory substantially performed all the services
required by the contract at a cost of PIM.
9. Determine the amount of franchise revenue to be recognized by Candy Factory for
the year 2019, if collectability of the note is assured.
а.
PO
С.
P4,000,000
b. P1,400,000
d.
P5,000,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bd4afd0-7ae3-4c4f-af3c-a5998e6a76e3%2F1f78c65f-85ea-461c-b0d1-8e91c649b99d%2F68azjii_processed.jpeg&w=3840&q=75)
Transcribed Image Text:agreements provides that the franchisor will assist in the location of site
supervision of the building construction, project study or market survey,
assistance in the acquisition of facilities, training and management of personnel,
quality control, advertising and promotion.
On December 31, 2019, Candy Factory substantially performed all the services
required by the contract at a cost of PIM.
9. Determine the amount of franchise revenue to be recognized by Candy Factory for
the year 2019, if collectability of the note is assured.
а.
PO
С.
P4,000,000
b. P1,400,000
d.
P5,000,000
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