Pacific Crossburgers Inc. charges an initial franchise fee of $70,000. Upon the signing of the agreement, a
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Prepare the entries to record the initial franchise fee on the books of the franchisor under the following assumptions. (Round to the nearest dollar.)
(a) The down payment is not refundable, no future services are required by the franchisor, and collection of the note is reasonably assured.
(b) The franchisor has substantial services to perform, the down payment is refundable, and the collection of the note is very uncertain.
(c) The down payment is not refundable, collection of the note is reasonably certain, the franchisor has yet to perform a substantial amount of services, and the down payment represents a fair measure of the services already performed.
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