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I need help with this question Sanjeev enters into a controct offering variable consideration. The contract pays him $5.000 month for six months of continuous
I need help with this question
Sanjeev enters into a controct offering variable consideration. The contract pays him $5.000 month for six months of continuous consulting services. in addition there is a 60% chance the contract wili pay an additionai $6,000 and a 40% chance the contract will pay an adolitional $7,000, depenaing on the outcome of the consuliung contract. Sanjeev concludes that this contract qualifes for revenue recognition over tme. Assume that Sanjeev estimates variable consideration as the most likcty anount. Atter Sanjeev has recogntzed revenue for two mantis of the cantiract, he. changes fits assessment of the chance the contract will pay hitm $7.000 to 70%. What adjustment to revenue should sangeev recognize to account for that change in estimate? Note: Round Intermedilate calculations to whole doliors. Mumple Choice Credt of \$5,000 Dobt of 55,000 Debh of 5334 ciedin 3374 Step by Step Solution
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