Exercise 6-11 (Algo) Variable consideration expected value; change in estimate [LO6-3, 6-6) Rocky Guide Service provides guided 1 to 5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $2,500 per tour day, and shortly after the end of each month, Rocky cams whether it will receive a $260 bonus per tour clay it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wildemess customers. The $2.600 per day and any bonus due are peld 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. I guided a total of 10 days from July 110 July 15. On July 16, based on Rocky's view that it had provided excellent service during the first part of the month. Recky revised its estimate to an 70% chance it would warn the bonus for July tours. Rocky also guided customers for 15 days from July 15 to 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 expected value it expects to receive. Required: 1. Prepare Rocky's July 15 journal entry to record revenue for tours given from July 1-July 15. 2. Prepare Rocky's July 31 journal entry to record revenue for tours given from July 16-July 31 3. Prepare Rocky's August 5 journal entry to record any necessary adjustments to revenue and receipt of payment from Wildemess. Note: If no entry is required on a specific date, select "No journal entry required" in the first account field. No 1 Date July 15 Answer is not complete. General Journal Debit Credit Accounts receivable Service revenue 28.000 (x) 25,000X 2 July 31 Accounts receivable Bonus receivable 39,000 8.500X Service revenue 32,500X 3 August 05 Cash 65,000 Accounts receivable 85,000 4 August Co Service revenue Bonus stable 8,500 5,500X < Prev 10 of 18 Next >