Rights to trade name, market area, and proprietary know$-$how

$$87000$

Training services

$30000$

Equipment $($cost of $$25100)$

$84000$

Total initial franchise fee

$$201000$

Upon signing the agreement, a payment of $$87000$ is due. Thereafter, two annual payments of $$57000$ are required. The credit rating of the franchisee is such that it would have to pay interest of $8\%$ to borrow money. The franchise agreement is signed on August $1,2024,$ and the franchise commences operation on November $1,2024.$ Assuming that no future services are required by the franchisor once the franchise begins operations, the journal entry on November $1,2024$ would include

a credit to Unearned Franchise Revenue for $$87000.$

a credit to Service Revenue for $$30000.$

a debit to Unearned Franchise Revenue for $$87000.$

a credit to Sales Revenue for $$84000.$