Katoby Associates provides consulting services to Connor to help them realize increased sales. The four$-$month contract, dated July $1^{st},$ requires Connor to pay Katoby $$25,000$ at the end of each month. In addition, Connor will pay an additional $$20,000$ to Katoby at the end of the contract, if certain sales targets are achieved. Katoby estimates a $75\%$ chance that sales will reach the target.

Assume that Katobv estimates variable consideration as the most likely amount.

Part $1$: Prepare the journal entry on July $31$ to record the first month of revenue under the contract.

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Part $2$: Assuming total sales exceed the target, prepare the journal entry, if any, on October $31$ to record receipt of the $$20,000$ bonus $($ignore the normal October payment of $$25,000).$

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Part $3$: Assuming total sales do not reach the target, prepare the journal entry, if any, on October $31$ to record failure to receive the $$20,000$ bonus $($ignore the normal October payment of $$25,000).$

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Assume that Katobv estimates variable consideration as the expected value.

Part $4$: Prepare the journal entry on July $31$ to record the first month of revenue under the contract.

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Part $5$: Assuming total sales exceed the target, prepare the journal entry, if any, on October $31$ to record receipt of the $$20,000$ bonus $($ignore the normal October payment of $$25,000).$

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