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I need help calculating Bonus receivable and service revenue, what am i doing wrong? for bonus rec. i did $120 * (10+15) days = $3,000.
I need help calculating Bonus receivable and service revenue, what am i doing wrong? for bonus rec. i did $120 * (10+15) days = $3,000. $1,200 *10= $12,000. $1,200* 15= $18,000
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 $1,200 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $120 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 $1,200 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 30% chance it will earn the bonus for July tours. It gulded 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 80% chance it would earn the bonus for 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 expected value 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.) above Venue 1. to 3. Prepare the journal entries "No journal entry required" in the first account field.) No Credit Date July 15 Answer is complete but not entirely correct. General Journal Accounts receivable Bonus receivable Service rev revenue 1 Debit 12,000 3,000 12.000 2 July 31 Accounts receivable Bonus receivable Service revenue 03 18,000 3,000 X 21,000 30.000 August 05 Cash Accounts receivable 03 30.000 14 3,000 X Augusts Service Ovenue Bonus receivable 3.000 Step by Step Solution
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