Exercise 6-10 (Algo) Variable consideration - most likely amount; change in estimate (LO6-3, 6-6] Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $2,900 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $290 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $2,900 per day and any bonus due are paid in one lump payment shortly after the end of each month On July 1, based on prior experience, Rocky estimated there is a 20% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1-July 15. On July 16, based on Rocky's view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 70% chance it would earn the bonus for all July tours. Rocky also guided customers for 15 days from July 16-July 31. . On August 5 Rocky learned it did not receive an average evaluation of "excellent" for its July tours, so it would not receive any bonus for July, and received all payment due for the July tours. Rocky bases estimates of variable consideration on the most likely amount it expects to receive. Required: 1. to 3. Prepare the journal entries to record the transactions above. (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 KI 1 2 3 4 > Record Rocky's July 15 journal entry to record revenue for tours given from July 1 - July 15. Note: Enter debits before credits. General Journal Date July 15 Debit Credit On July 1, based on prior experience, Rocky estimated there is a 20% chance it will earn the bonus for July tours. It g 10 days from July 1-July 15. . On July 16, based on Rocky's view that it had provided excellent service during the first part of the month, Rocky revised its estima to an 70% chance it would earn the bonus for all July tours, Rocky also guided customers for 15 days from July 16-July 31. . On August 5 Rocky learned it did not receive an average evaluation of "excellent" for its July tours, so it would not receive any bonus for July, and received all payment due for the July tours. Rocky bases estimates of variable consideration on the most likely amount it expects to receive Required: 1. to 3. Prepare the journal entries to record the transactions above. (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 1 2 3 4 > Record Rocky's July 31 journal entry to record revenue for tours given from July 16 - July 31. Note: Enter debits before credits. Date General Journal Debit Credit July 31 various tours that Wilderness sells Rocky receives $2,900 per tour day, and shortly after the end of each month Rocky learns whether evaluation of excellent" by Wilderness customers The $2,900 per day and any bonus due are paid in one lump payment shortly after the end of each month . On July 1, based on prior experience, Rocky estimated there is a 20% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1-July 15, On July 16, based on Rocky's view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 70% chance it would earn the bonus for all July tours. Rocky also guided customers for 15 days from July 16-July 31 . On August 5 Rocky learned it did not receive an average evaluation of excellent" for its July tours, so it would not receive any bonus for July, and received all payment due for the July tours. Rocky bases estimates of variable consideration on the most likely amount it expects to receive Required: 1. to 3. Prepare the journal entries to record the transactions above. (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 1 2 3 4 > Record Rocky's August 5 journal entry to record the receipt of payment from Wilderness. Note: Enter debits before credits Date General Journal Debit Credit August 05 various tours that Wilderness sells. Rocky receives $2,900 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $290 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $2,900 per day and any bonus due are paid in one lump payment shortly after the end of each month. . On July 1, based on prior experience, Rocky estimated there is a 20% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1-July 15. . On July 16, based on Rocky's view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 70% chance it would earn the bonus for all July tours Rocky also guided customers for 15 days from July 16-July 31. . On August 5 Rocky learned it did not receive an average evaluation of excellent" for its July tours, so it would not receive any bonus for July, and received all payment due for the July tours. Rocky bases estimates of variable consideration on the most likely amount it expects to receive. Required: 1. to 3. Prepare the journal entries to record the transactions above. (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 Record Rocky's August 5 journal entry to record any necessary adjustments to revenue Note: Enter debits before credits. Date General Journal Debit Credit August 05