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nber 31, 20x6, JANE granted the following people ANNA wn payment) (face P1,000,000) pleted = collection 200,000 700,000 25% Likely anchise fee 1% of NI und 1/31/2017 evenue to be recoanized hy JANE on December

nber 31, 20x6, JANE granted the following people ANNA wn payment) (face P1,000,000) pleted = collection 200,000 700,000 25% Likely anchise fee 1% of NI und 1/31/2017 evenue to be recoanized hy JANE on December

FINANCIAL ACCOUNTING
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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JANE creates a franchise for the sale of a particular product. JANE incurs P600,000 initial direct costs for each franchise g nted. At December 31, 20x6, JANE granted the following people franchises 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 200,000 910,000 200,000 200,000 200,000 700,000 400,000 550,000 25% 10% 95% 100% Likely Unlikely 1% of NI Unlikely Likely 1% of NI 1% of NI 1% of NI Period of refund 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, 20x6?
Transcribed Image Text:JANE creates a franchise for the sale of a particular product. JANE incurs P600,000 initial direct costs for each franchise g nted. At December 31, 20x6, JANE granted the following people franchises 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 200,000 910,000 200,000 200,000 200,000 700,000 400,000 550,000 25% 10% 95% 100% Likely Unlikely 1% of NI Unlikely Likely 1% of NI 1% of NI 1% of NI Period of refund 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, 20x6?
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