equal installments every December 31, evidenced by a 12% promissory note. TheOn January 1, 2019, Candy Factory sold a franchise to sell its product for P5M. Theinitial fee is P500,000 upon signing the contract and the balance is payable in 5d.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 sitesupervision 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 servicesrequired by the contract at a cost of PIM.9. Determine the amount of franchise revenue to be recognized by Candy Factory forthe year 2019, if collectability of the note is assured.а.POС.P4,000,000b. P1,400,000d.P5,000,000

Revenue shall be recognised when it is accrued and earned. Revenue shall be recognised which…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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