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Exercise 6-10 (Algo) Variable consideration - most likely amount; change in estimate [LO663,66] Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky

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Exercise 6-10 (Algo) Variable consideration - most likely amount; change in estimate [LO663,66] Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky Mountains. Widerness Tours hires Rocky to lead various tours that Widerness sells. Rocky receives $1,300 per tour day, and shorly after the end of each month Rocky leams whether it will receive a $130 bonus per tour day it gulded duining the previous month if ts service during that month recelved an overage evaluation of "excellent" by Wildemess customers. The $1300 per day and ary bonvis fice are paid in one lump payment shortly after the end of each month. - On July 1 based on prior experience, Rocks estimated there is a 40% chanci it whi eam the ponus for Juy tours. It quided a total of 10 days from July 1 - July 15. - On July 16. besed on Rocky's view that it had provided excellent service during the ficst par of the mionth. Rocky revised its estimate to an 90% chance it would eam the bonus for all July tours. Rocky also guded customers for 15 doys from July 16 -July 31. - On August 5 Rocly leamed it did not receive an average evaluation of fexcellent for its July tours. so it would not recetve any bonus for July, and receved all payment due for the July tours. Rocky bases estimates of variable consideration on the most ikoy amount it expects to recelve. Required: 1. to 3. Prepare the journal entries to record the wansactions above. (if no entry is tequited fot a transaction/event, select tNo journal entry required" in the first account field.) Jourral entry worksheet Record Rocky's July 15 journal entry to record revenue for tours given from july 1 - July 15. Note: Enter debits before credits. Journal entry worksheet Record Rocky's July 31 journal entry to record revenue for tours given from July 16 - July 31. Note: Enter debits before credits. Journal entry worksheet 4 Record Rocky's August 5 journal entry to record the receipt of payment from Wilderness. Note: Enter debits before credits. Journal entry worksheet Record Rocky's August 5 journal entry to record any necessary adjustments to revenue. Note: Enter debits before credits

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