Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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
image text in transcribed
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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services A Systematic Approach

Authors: William F. Messier

6th Edition

0073526908, 9780073526904

More Books

Students also viewed these Accounting questions