A company is expecting a large gain from a potential future transaction. Management really needs the revenue boost to meet analyst expectations. They ask you, as their auditor, to help them to figure out the entry in the current period. Can you help your client?

a.

Sure, I love my clients! Db. Receivables Cr. Revenues

b.

I'd do anything for my favorite client! But journal entries are not my thing... Maybe Db. Revenues Cr. Receivables?

c.

I'll save them from themselves! My audit class taught me that you cannot recognize anticipated gains! That is a 'no go'!

d.

Yes, I have heard somewhere that you can book gain contingencies when they are reasonably possible and estimable.