show your solution in good accounting form. you! Transcribed Image Text: On July 1, 2011, ABC, a franchisor, entered into a franchise agreement with EEE, a franchisee. The total franchise

show your solution in good accounting form. you! Transcribed Image Text: On July 1, 2011, ABC, a franchisor, entered into a franchise agreement with EEE, a franchisee. The total franchise fees
agreed upon is P2,100,000 of which P100,000 is payable upon signing and the balance payable in four annual installments.
It was agreed that the down payment is non-refundable, notwithstanding lack of substantial performance of services by
franchisor. The deferred revenue from franchise fee to be reported in the July 31, 2011 financial statements of AAA would
be:

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