Current Attempt in Progress

On January $1,2025,$ Ruth Lee signed an agreement, covering $5$ years, to operate as a franchisee of Sunland Inc. for an initial franchise

fee of $$50,000.$ The amount of $$10,000$ was paid when the agreement was signed, and the balance is payable in five annual payments

of $$8,000$ each, beginning January $1,2026.$ The agreement provides that the down payment is nonrefundable and that no future

services are required of the franchisor once the franchise commences operations on April $1,2025.$ Ruth Lee's credit rating indicates

that she can borrow money at $12\%$ for a loan of this type.

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$($a$)$

Your answer is partially correct.

Prepare journal entries for Sunland for $2025-$related revenue for this franchise arrangement. $($Credit account titles are automatically

indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles and enter $0$ for

the amounts. Round present value factor calculations to $5$ decimal places, eg$.1\mathrm{.}25124$ and the final answer to $0$ decimal places eg$.$

$58,971.$ List all debit entries before credit entries.$)$

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Account Titles and Explanation

Debit

Credit

Cash

Notes Recelvable

Dlscount on Notes Recelvable

Unearned Franchlse Revenue

Unearned Franchlse Revenue

Franchlse Revenue

Dlscount on Notes Recelvable