Revenue Recognition - Graded Assignment Ouestion 1: On February 28, 2022, Jones \& Hill, a consulting firm, entered into a contract to help Dr. LuLu Love, a local pediatric dental provider, design a marketing strategy to compete with Gold Tooth Dental. The contract spans ten months. Dr. Love promises to pay $75,000 at the end of each month beginning in March. At the end of the contract, Jones \& Hill either will give Dr. Love a refund of $75,000 or will be entitled to an additional $75,000 bonus, depending on whether services at Dr. Love's practice at year-end have increased to a target level. At the inception of the contract, Jones \& Hill estimates a 60% chance that it will carn the $75,000 bonus and calculates the contract price based on the expected value of future payments to be received. At the beginning of the sixth month and after recording the Jnly 31st entry, circumstances change, and Jones \& Hill revises to 75% its estimate of the probability that it will earn the bonus. Assume Jones \& Fill has a June 30th year-end. Required (Show your work to support amounts and do not round, show two decimal places uniess the calculated amount is a whole dollar): Journal Entry March 31, 2022 Bntry on August 1st to adiust the bonus receivable and revenue based on the revised estimates for Jones \& Bill, Record the entry on December 31,2022 , assuming Jones \& Fill receive the bonus. Record the entry on December 31,2022 assuming Jones \& Fill do not receive the bonus. After all entries have been recorded indicate the total revenue recognized under each scenario and explain why this makes sense. Indicate amounts to be reported by Jones \& Fill on June 30, 2022 on both the Balance shect and Income statement