On December 31, 2017, Electricut signed an agreement to operate a franchise of Electricut for a franchise fee of P80,000. Of this amount P30,000 was paid upon signing of the agreement and the balance is payable in fie annual payments of P10,000 each beginning December 31, 2013. The present value of the first five payments at an appropriate interest rate was P56,000 at December 31, 2017. The agreement provides that downpayment is not refundable and no future services are required of the franchisorThe collection of the notes receivable is reasonably certainElectricut should report unearned revenue from franchisee fee in its December 31 2017 balance sheet at