1. On November 1, 2016, GSW, Inc. authorized Steve Kerr to operate a franchisee for an initial...
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1. On November 1, 2016, GSW, Inc. authorized Steve Kerr to operate a franchisee for an initial franchise fee of P 1,500,000. Of this amount, 40% was received upon contract signing and the balance, represented by a note, is due in
three annual installments starting December 31,2016. A 65-day period of refund was granted. According to the agreement, the down payment represents a fair measure of the services initially performed. The collectability of the
note is reasonably certain. PV factor of 2.4. What is the unearned franchise fee at December 31,2016?
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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