You are the CPA for franchisor (FR). FR and franchisee (FE) enter a franchise agreement: 1. FR and FE enter a franchise agreement dated 010121. 2 FE agrees to pay FR $100,000 over five years starting 010121 for FR's management consultation: a. $20,000 cash on 010121 ; and b. $80,000 note receivable in 5 annual, equal amounts of $20,000 due on Dec. 31 of each year starting 123122. 3. FR earns this revenue ratably over the years. 4. On 010122 , FR has reason to believe that FE will be unable to pay the debt owed under the franchise agreement. What is the journal entry, if any, that FR recognizes on 010121 ? Multiple Cnoice FR debits Cash $20,000, debits Notes Receivable $80,000, and credits Unearned Revenue $100,000. FR debits Unearned Revenue $20,000 and credits Deferred Revenue $20,000 FR debits Cash $100,000, credits Unearned Revenue $80,000 and credits Deferred Revenue $20,000 FR credits Unearned Revenue $20,000 and debits Revenue $20,000 None of the other choices are correct. You are the CPA for franchisor (FR). FR and franchisee (FE) enter a franchise agreement: 1. FR and FE enter a franchise agreement dated 010121. 2FE agrees to pay FR $100,000 over five years starting 010121 for FR's management consultation: a. $20,000 cash on 010121 ; and b. $80,000 note receivable in 5 annual, equal amounts of $20,000 due on Dec. 31 of each year starting 123122 . 3. FR earns this revenue ratably over the years. 4. On 010122 , FR has reason to believe that FE will be unable to pay the debt owed under the franchise agreement. 5. FR is on the accrual basis of accounting; FE is on the cash basis of accounting. What is the journal entry, if any, that FR recognizes after 010122 as a result of FR having reason to believe that FE will be unable to pay the debt owed under the franchise agreement.? Multiple Cnoice FR debits Deferred Revenue $20,000, debits Notes Receivable for 80,000 and credits Revenue $100,000 FR debits Deferred Revenue $80,000 and credits Unearned Revenue $80,000 FR debits Unearned Revenue $80,000 and credits Deferred Revenue $80,000 FR debits Revenue $20,000 and credits Unearned Revenue $20,000 None of the other choices are correct. Cyndy is a sole proprietor of a day care. She wishes to build a new playground and also purchase new toys. She plans on doing this in stages and therefore wants a commercial line of credit (LOC). On February 1,2023 Cyndy obtains a LOC for $100,000 and on March 1, 2023 she withdraws $30,000. On April 1, 2023, Cyndy pays back $10,000. Which of the following is the correct reason, and correct journal entry to recognize when Cyndy pays the $10,000 on April 1,2023 ? Multiple Cnoice Cyndy recognizes in her own personal financial records a debit to Cash of $10,000 and credit to LOC Payable $10,000 because she has unlimited liability for repayment of the debt. Cyndy recognizes in her own personal financial records a debit to Cash of $10,000 and credit to LOC Payable of $30,000 because Cyndy has unlimited liability for repayment of the debt. The day care sole proprietorship recognizes a debit to Cash of $10,000 and credit to LOC Payable of $10,000 even though Cyndy has unlimited liability for repayment of the debt. The day care sole proprietorship recognizes a debit to LOC Payable of $10,000 and credit to Cash of $10,000 even though Cyndy has unlimited liability for repayment of the debt. None of the other choices are correct