FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Currency 11 ( Garamond Paste .00 .0 Clipboard Font Alignment G: Number ," A1 , r 14-51 Freys, Inc., sells a 12-year "stuffed potato" fra 2 14-51 Freys, Inc., sells a 12-year "stuffed potato" franchise to 3 Reynaldo. The fran- chise contains many restrictions on how 4 Reynaldo may operate his store. For instance, Reynaldo cannot use 5 less than Grade 10 Idaho potatoes, must bake the potatoes at a 6 constant 410 degrees, must dress store personnel in Freys-approved 7 uniforms, and must have a Freys sign that meets detailed 8 specifications on size, color, and construction. When the franchise 9 contract is signed, Reynaldo makes a noncontingent $160,000 10 payment to Freys. During the same year, Reynaldo pays Freys 11 |$300,000-14% of Reynaldo's sales. How does Freys treat each of 1 these payments? How does Reynaldo treat each of the payments? 13 14" Green Highlights require your input-Notes some #'s may be so 15 16 How does Freys treat each of these payments? $160,000 Payment-how is this recorded 18 $300,000 Payment-how is this recorded 19 20 21 How does Reynaldo treat each of the payments? $160,000 Payment-how is this recorded 23 24 $300,000 Payment-how is this recorded