On October 1, 2021 Jones & Hill, a consulting firm, enters a contract to help BGSE, a local pediatric dental provider, design a marketing strategy to compete with Kids Kings Dental. The contract spans eight months. BGSE promises to pay $25,500 at the end of each month. At the end of the contract, Jones & Hill either will give BGSE a refund of $7,500 or will be entitled to an additional 57.500 bonus, depending on whether services at BGSE have increased to a target level. At the inception of the contract, Jones & Hill estimates an 65% chance that it will earn the $7,500 bonus and calculates the contract price based on the expected value of future payments to be received At the beginning Harris of the 6th month, March 1* and after recording the February 28th entry. circumstances change, and Jones & Hill revises to 75% its estimate of the probability that it will camn the bonus. At the end of the contract, Jones & Hill do not receive the additional consideration of $7,500 and are required to refund BGSE. Assume Jones & Hill has a December 31+ year-end. Required: 1. Briefly describe the difference between the most likely amount" and the expected value" approach." 2. Prepare the journal entries related to the contract as indicated. 3. Additionally, please indicate amounts to be reported on the balance sheet (ignore cash) and income statement on December 31, 2021 for Jones & Hill. Journal Entry October 31" Balance Sheet - December 31, 2021 Income Statement - For Year-ended December 31, 2021 Entry on March 1" to adjust based on the revised estimate March 31 entry May 31st entry