Chapter 18, Problem 38E

To determine

Franchise: It is the right to sell a company’s product with specified terms and condition in a particular area.

Franchisee: It is an organization or a sole proprietor that holds a franchise for the sale of goods and services in operations.

Franchisor: It is an organization or a sole proprietor that provides a franchise for the sale of goods and services in operation.

(a)

To prepare: To prepare the journal entries for C for 2017-related revenue for this franchise arrangement.

Given information: All the related information is provided in the question document.

To determine

(b)

To prepare: To prepare the journal entries for the transactions.

Given information: All the related information is provided in the question document.

To determine

(c)

To prepare: To prepare the journal entries.

Given information: All the related information is provided in the question document.