7.

On January 1, 2021, VVV Shop received from ABC 300 pieces of bread toasters. VVV was to sell these on consignment at 50% above original cost, for a 15% commission on the selling price. After selling 200 pieces, VVV had the remaining unsold units repaired for some electrical defects for which he spent P2,000. ABC subsequently increased the selling price of the remaining units to P330 per unit. On January 31, 2021, VVV remitted P64,980 to ABC after deducting the 15% commission, P850 for delivery expenses of sold units, and P2,000 for the repair of 100 units. The consigned goods cost ABC P200 per unit, and P900 had been paid to ship them to VV Shop. All expenses in connection with the consignment were reimbursable to the consignee. Determine the value inventory to be presented in the statement of financial Position.Each of ABC's 12 new franchisee contracted to pay an initial franchise fee of P50,000. By December 31, 2021, each franchisee had paid a non-refundable P5,000 fee and signed a note to pay P20,000 principal plus interest rate of 10% on December 31, 2022 and December 31, 2023. Experience indicates that three franchises will default on the additional payments. Service for the initial franchise fee will be performed in 2022. What amount of franchise revenue would ABC recognize on December 31, 2021