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Sandhill Delight, Inc. charges an initial franchise fee of $74,800 for the right to operate as a franchisee of Sandhill Delight. Of this amount, $25,200
Sandhill Delight, Inc. charges an initial franchise fee of $74,800 for the right to operate as a franchisee of Sandhill Delight. Of this amount, $25,200 is collected immediately. The remainder is collected in four equal annual installments of $12,400 each. These installments have a present value of \$41,723. As part of the total franchise fee, Sandhill Delight also provides training (with a fair value of $2,000 ) to help franchisees get the store ready to open. The franchise agreement is signed on April 1, 2025, training is completed, and the store opens on July 1,2025. Prepare the journal entries required by Sandhill Delight on April 1 and July 1. 2025. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the probiem.) Date Account Titles and Explanation Debit Credit
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