On January 1, 2023, Revco entered into a contract with Lodgett Company. The contract required Revco to pay Lodgett $6,000 at the end of each of the next three months for consulting services to assist Revco in increasing its sales. The contract includes a bonus of $2,000 if Revco's sales increase by at least 10% over the three months. Due to past experience with similar clients, Lodgett assigns a 60% probability to the likelihood that sales will increase by at least 10%. 1. Using expected value as the estimate of the variable consideration, calculate the transaction price of the consulting contract. (2 points) 2. Prepare the entry Lodgett will record at the end of January when it receives its first $6,000 monthly payment. (3 points) Assuming that Revco's sales increased 12% over the six month period, prepare the entry for Lodgett's receipt of the bonus on April 30, 2023. ( 3 points) In one sentence, explain how your answer to Question 3 would change if Revco's sales increased by less than 10%. (2 points)