Problem Four (a): Revenue Recognition Money Advisors provided Heights Construction with assistance in implementing various cost-savings initiatives. Advisors' contract specifies that it will receive a flat fee of $50,000 and additional $20,000 if Heights reaches a prespecified target amount of cost savings. The Advisors estimate that there is a 20% chance that Heights will achieve the cost savings target. Required: 1. Assuming Advisors use the expected value as its estimate of variable consideration, calculate the transaction price. 2. Assuming Advisors use the most likely value as its estimate of variable consideration, calculate the transaction price. Problem Four (b): Revenue Recognition Amazon Tour Service provides guided 1-5-day hiking tours throughout various jungle locations. Camper-Tours hires Amazon to lead various tours that Amazon Tour Service sells. Amazon receives $1,000 per tour day, and shortly after the end of each month Amazon learns whether it will receive a $100 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of excellent by Camper-Tours customers. The $1,000 per day and any bonus due are paid in one lump payment shortly after the end of each month. . On July 1, based on prior experience, Amazon estimated that there is a 30% chance that it will earn the bonus for July tours. It guided a total of 10 days from July 1-July 15. . On July 16, based on Amazon's view that it had provided excellent service during the first part of the month, Amazon revised its estimate to an 80% chance it would earn the bonus for July tours. Amazon also guided customers for 15 days from July 16-July 31. . On August 5 Amazon learned that it did not receive an average evaluation of "excellent" for its July tours, so it would not receive any bonus for July, and received all payment due for the July tours. Amazon bases estimates of variable consideration on the most likely amount method. Required: 1. Prepare Amazon's July 15 journal entry to record revenue for tours given from July 1 to July 15. 2. Prepare Amazon's July 31 journal entry to record revenue for tours given from July 16 to July 31. 3. Prepare Amazon's August 5 journal entry to record any necessary adjustments to revenue and receipt of payment from Camper-Tours Company