Pharaoh CrossburgersInc. Charges an initial franchise fee of $$50,000.$ Upon the signing of the agreement $($ which covers $3$ years after commencement of the operations$),$ a payment of $$20,000$ is due. Thereafter, $3$ annual payments of $$10,000$ are required. The credit rating of the franchisee is such that it would have to pay interest at $10\%$ to borrow money. The franchise agreement is signed on May $1,2025,$and the franchise commences operation on July $1,2025.$

Prepare the journal entries for $2025$ for the franchisor under the following assumptions

No future services are required by the franchisor once the franchise to operations

The franchisor has substantial services to perform once the franchise begins to maintain the

value of the franchise

The total franchise fee includes training services $($with a value of $$2,900)$ for the period leading up to the franchise opening and for $2$ months following opening.