Its name to different enterprise throughout the country. the franchise agreement requires the franchisee to make an initial payment of p80,000 on the agreement date and the balance, covered by a payment of p160,000- non-interest bearing note payable in four years beginning 1 year after the date of agreement. gong cha agrees to make market studies and other related services for the franchisee. the initial payment is refundable until the date of opening. the discount rate is 10%. the following are the transactions: