Prepare journal entry for the revenue recognition

Satay Kita Berhad sells variety of satay and other related menus. Satay Kita offers partnership with the new startups through franchise agreement. Satay Kita has been in discussion with a new startups, New Satay Station to franchise its products. The agreement provided that an initial fee of RM2,400,000 is charged for a franchise, with RM480,000 paid when all the initial services required by the contract are completed and the balance is payable in the four equal annual installment payments payable at the end of each year. The market prevailing interest rate was 10%. New Satay Station has the right to purchase RM90,000 of kitchen equipment and supplies for RM75,000. An additional part of the initial fee is for advertising to be provided by Satay Kita during the next five years after New Satay Station starts operation. The value of the advertising is estimated to be RM1,000 for each month. New Satay Station is also required to pay ongoing royalty payments of 1% of its annual sales (payable each 31 January of the following year). Collectability of the payments from New Satay Station is reasonably assured. Satay Kita has completed all the initial services required by the contract on 1 March 2020. New Satay Station starts operation on 1 May 2020