Momong Company sells a franchise with initial franchise fee of P70,000. A downpayment of P20,000 cash is required, with the balance covered by issuance of P50,000, 10% note payable in five equal annual installments . Question: If all material services have been substantially performed, collectibility of note is reasonably assured, but the refund period has not expired, what is the journal entry to record the transaction: Group of answer choices a. Debit Cash- P20,000; Debit Notes receivable - P50,000; Credit Franchise fees - P20,000; Credit Unearned franchise fees - P50,000 b. Debit Cash - P20,000; Debit Notes receivable - P50,000; Credit Unearned franchise fees - P70,000 c. Debit Cash - P20,000; Debit Notes receivable - P50,000; Credit Franchsie fees - P50,000; Credit Unearned franchise fees - P20,000 d. Debit Cash - P20,000; Debit Notes receivable - P50,000; Credit Franchise fees - P70,000
Momong Company sells a franchise with initial franchise fee of P70,000. A downpayment of P20,000 cash is required, with the balance covered by issuance of P50,000, 10% note payable in five equal annual installments .
Question: If all material services have been substantially performed, collectibility of note is reasonably assured, but the refund period has not expired, what is the
Group of answer choices
a. Debit Cash- P20,000; Debit Notes receivable - P50,000; Credit Franchise fees - P20,000; Credit Unearned franchise fees - P50,000
b. Debit Cash - P20,000; Debit Notes receivable - P50,000; Credit Unearned franchise fees - P70,000
c. Debit Cash - P20,000; Debit Notes receivable - P50,000; Credit Franchsie fees - P50,000; Credit Unearned franchise fees - P20,000
d. Debit Cash - P20,000; Debit Notes receivable - P50,000; Credit Franchise fees - P70,000
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