JANE creates a franchise for the sale of a particular product, JANE incurs P600,000 initial direct costs for each franchise granted. At December 31, 20x6, JANE granted the following people franchises that have open accounts with JANE.

	ANNA	BETTY	CHERRY	DANA
Cash paid (down payment)	200,000	200,000	200,000	200,000
Note unpaid (face 1,000,000)	700,000	400,000	910,000	550,000
Services completed	25%	10%	95%	100%
Probability of collection	Likely	Unlikely	Unlikey	Likely
Continuing franchise fee	1% of NI	1% of NI	1% of NI	1% of NI
Period of refund	1/31/2017	2/28/2017	12/30/2016	12/30/2016

What is the total revenue to be recognized by JANE on December 31, 20x6?

Answer rating: 100% (QA)

Answer Calculation of total revenue to be recognized by JANE on December 31 20... View the full answer