Wildhorse Diners Inc. charges an initial franchise fee of $207000 broken down as follows:

Rights to trade name, market area, and proprietary know-how	$89000
Training services	32000
Equipment (cost of $26100)	86000
Total initial franchise fee	$207000

Upon signing of the agreement, a payment of $89000 is due. Thereafter, 2 annual payments of $59000 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, 2018, and the franchise commences operation on November 1, 2018. Assuming that no future services are required by the franchisor once the franchise begins operations, the entry on November 1, 2018 would include

a credit to Sales Revenue for $86000.

a credit to Service Revenue for $32000.

a debit to Unearned Franchise Revenue for $89000.

a credit to Unearned Franchise Revenue for $89000.