On April 1, 2012 Weston, Inc.entered into a franchise agreement with a local business-man.The franchisee paid $240,000 and gave a $160,000, 8%, 3-year note payable with interest due annually on March 31.Weston recorded the $400,000 initial franchise fee as revenue on April 1, 2012.On December 30, 2012, the franchisee decided not to open an outlet under Weston's name.Weston canceled the franchisee's note and refunded $128,000, less accrued interest on the note, of the $240,000 paid on April 1.What entry should Weston make on December 30, 2012?

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The Answer of On April 1, 2012 Weston, Inc.entered into a franchise agreement with a local business-man.The franchisee paid $240,000 and gave a $160,000, 8%, 3-year note payable with interest due annually on March 31.Weston recorded the $400,000 initial franchise fee as revenue on April 1, 2012.On December 30, 2012, the franchisee decided not to open an outlet under Weston's name.Weston canceled the franchisee's note and refunded $128,000, less accrued interest on the note, of the $240,000 paid on April 1.What entry should Weston make on December 30, 2012?