Is the following correct?

On January $1,$ Ellis Consulting entered into a contract to complete a cost reduction program for

Meridian Financial over a six$-$month period. Ellis will receive $$22,000$ from Meridian at the end

of each month. If total cost savings reach a specific target, Ellis will receive an additional

$$12,000$ from Meridian at the end of the contract, but if total cost savings fall short, Ellis will

refund $$12,000$ to Meridian. Ellis estimates an $85\%$ chance that cost savings will reach the target

and calculates the contract price based on the expected value of future payments to be received.

Record the following entries:

Collection of Cash and Recognition of First Month$$s Revenue $($January $31,2025)$

$22000*6=132000*15\%=19800$

$144000*85\%=122400$

$122400+19800=142200/6=23700$

J$/$E

Dr Cash $22000$

Cr Bonus Receivable $1700$

Cr Service Rev $23700$

Receipt of Bonus $($June $30,2025)-$ Assuming Total Cost Savings Exceed Target

Dr cash $12$

Cr Bonus Receivable $10,200(1700*6)$

Cr Service rev $1800$

Payment of Penalty $($June $30,2025)-$ Assuming Total Cost Savings Fall Short of Target

Dr service rev $1800$

Dr Bonus Recievable $10,200(1700*6)$

Cr Cash. $12,000$