Prepare entries on the books of franchisor to record

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On April 1, 2019, Chowqueen, Inc. entered into a franchise agreement with a local businessman. The franchisee paid P288,000 and gave a P192,000, 8%, 3-year note payable with due annually on March 31. Weston recorded the P480,000 initial franchise fee as revenue on April 1, 2019. On December 31, 2019, the franchisee decided not to open an outlet under Chowqueen's name. Chowqueen canceled the franchisee's note and refunded P153,600, less accrued interest on the note of the P288,000 paid on April 1.

Required:

Problem 1: Prepare entries on the books of franchisor to record the above transaction.

Reference no: EM132707662

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