Instructions

Velocity Racing School is a company that trains people to drive their sports cars on a track. They are under contract with Thunderhill Raceway to train drivers on that track. They are paid $$500$ per student, and at the end of the month, they receive an additional $$100$ per student if enough of the students rate the instructors as 'excellent'. They are paid on the ${10}^{th}$ of the following month. They make adjusting entries both mid and end of month. For the month of July, they worked with $100$ students in the first $15$ days, and by the way things were going, they felt that there was a $40\%$ chance of meeting the excellence threshold. During the latter half of the month, they worked with another $200$ students, but by the end of the month, they felt that there was a $90\%$ chance of meeting the excellence threshold for the month. When it was time to be paid on the ${10}^{th}$ of the following month, it turns out that they did not meet the excellence threshold. Velocity uses expected value for variable consideration. How much revenue did they book on the ${15}^{th}?$ On the ${31}^{st?}$ On the ${10}^{th}$ of the following month? If they need to reduce the revenue account, enter this as a negative number.