JANE creates a franchise for the sale of a particular product. Jane incurs P600,000 initial direct costs for each franchise granted. At December 31, 2016, Jane granted the following people franchise that have open accounts with Jane. ANNA BETY CHERRY DANA Cash paid (down payment) Note unpaid (face P1,000,000) Services completed Probability of collection Continuing franchise fee Period of refund 200,000 700,000 200,000 400,000 200,000 910,000 200,000 550,000 25% 10% 95% 100% Likely Likely 1% of NI Unlikely Unlikely 1% of NI 1% of NI 1% of NI 1/31/2017 2/28/2017 12/30/2016 12/30/2016 What is the total revenue to be recognized by JANE on December 31, 2016?

JANE creates a franchise for the sale of a particular product. Jane incurs P600,000 initial direct costs for each franchise granted. At December 31, 2016, Jane granted the following people franchise that have open accounts with Jane. ANNA BETY CHERRY DANA Cash paid (down payment) Note unpaid (face P1,000,000) Services completed Probability of collection Continuing franchise fee Period of refund 200,000 700,000 200,000 400,000 200,000 910,000 200,000 550,000 25% 10% 95% 100% Likely Likely 1% of NI Unlikely Unlikely 1% of NI 1% of NI 1% of NI 1/31/2017 2/28/2017 12/30/2016 12/30/2016 What is the total revenue to be recognized by JANE on December 31, 2016?

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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