Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 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.

 ANNABETTYCHERRYDANA
Cash paid (down payment)200,000200,000200,000200,000
Note unpaid (face 1,000,000)700,000400,000910,000550,000
Services completed25%10%95%100%
Probability of collection LikelyUnlikelyUnlikeyLikely
Continuing franchise fee1% of NI1% of NI1% of NI1% of NI
Period of refund 1/31/20172/28/201712/30/201612/30/2016


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

Step by Step Solution

3.41 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

Answer Calculation of total revenue to be recognized by JANE on December 31 20... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Business Law

Authors: Jeff Rey F. Beatty, Susan S. Samuelson

3rd Edition

978-0324826999, 0324826990

More Books

Students also viewed these Accounting questions

Question

=+d) State the conclusion from this analysis.

Answered: 1 week ago

Question

Solve the relation Exz:Solve therelation ne %3D

Answered: 1 week ago