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8:36 On July 1. Wiggins Associates enters into a contract to provide consulting services to Pennsylvania University (PU). The contract is anticipated to last four

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8:36 On July 1. Wiggins Associates enters into a contract to provide consulting services to Pennsylvania University (PU). The contract is anticipated to last four months and is intended to achieve significant cost savings at the university. The contract stipulates that PU will pay Wiggins $35,000 at the end of each month, and, if total cost savings reach a specific target, Pu will pay an additional $30,000 to Wiggins at the end of the contract. Wiggins estimates a 70% chance that cost savings will reach the target. Assume that Wiggins estimates uncertain consideration as the most likely amount Required: Do the following for Wiggins: a. Prepare the journal entry on July 31 to record the first month of revenue under the contract. b. Assuming total cost savings exceed the target, prepare the journal entry. If any, on October 31 to record receipt of the $30,000 bonus (ignore the normal October payment of $35,000). c. Assuming total cost savings do not reach the target, prepare the journal entry, If any, on October 31 to record failure to receive the $30,000 bonus (ignore the normal October payment of $35,000). (For all requirements, If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 1 > Record the first month of revenue under the contract. Note: Enter debits before credits General Journal Debit Credit Date July 31 Prey 1 of 15 . Next > (For all requirements, If no entry is required for a View transaction list Journal entry worksheet Record the first month of revenue under the contract. Note: Enter debits before credits. Date General Journal Debit Credit July 31 Record entry Clear entry View general Journal Journal entry worksheet Record the failure to receive the $30,000 bonus. Note: Enter debits before credits. Date General Journal Debit Credit October 31 Record entry Clear entry View general journal

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