Alberto's Adventures, Ine. provides guided mountain biking and kayaking trips tours in the

Pacific Northwest. Wild West Tours subcontracts Alberto to lead various trips that Wild Wes

offers. According to the contract, Alberto will receive $$1,000$ per tour day. Aberto aill aloo

receive a bonus of $$100$ per day if$,$ on average, he receives an overall customer evaluation of $8\mathrm{.}0$

out of $10$ for the month. The $$1,000$ per day and any bonus due are paid in one lump paymem

shortly after the end of each month.

On August $1,$ based on prior experience, Alberto estimated there is a $30\%$ chance he will earn the

bonus for August tours. He guided a total of $10$ days from August $1-$August $15.$

On August $16,$ based on Alberto's view that he had provided excellent service during the first

part of the month, he revises his estimate to an $80\%$ chance it would earn the bonus for all

August tours. Alberto also guided customers for $15$ days from August $16-$ August $31.$

On September $5$ Alberto learned that he did not receive an average evaluation of "excellent" for

its August tours, so it would not receive any bonus for August, and received all payment due for

the August tours.

a$.$ Prepare all of Alberto's journal entries related to the August trips assuming that he bases

variable consideration on the expected value he expects to receive.

b$.$ Presume the same facts as above Prepare all of Alberto's journal entries related to the August trips assuming that he bases variable consideration on the most likely amount he expects to receive.