Rocky Guide Service provides guided 15 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $1,700 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $170 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $1,700 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, Rocky estimated there is a 20% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1July 15.
• On July 16, based on Rockys view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 70% chance it would earn the bonus for all July tours. Rocky also guided customers for 15 days from July 16July 31.
• On August 5 Rocky learned 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.

Rocky bases estimates of variable consideration on the most likely amount it expects to receive. Required: 1. to 3. Prepare the journal entries to record the transactions above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Check my work mode: This shows what is correct or Incorrect for the work you have completed so far. It does not indicate completion. Return to question 5 . On July 1, based on prior experience, Rocky estimated there is a 20% chance it will carn the bonus for July tours. It guided a total of 10 days from July 1 July 15, . On July 16, based on Rocky's view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 70% chance it would earn the bonus for all July tours, Rocky also guided customers for 15 days from July 16-July 31, . On August 5 Rocky leamed 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. 0.8 points Rocky bases estimates of variable consideration on the most likely amount it expects to receive Required: 1. to 3. Prepare the journal entries to record the transactions above. (If no entry is required for a transaction/event, select "No . journal entry required" in the first account field.) * Answer is complete but not entirely correct. No Date General Journal Debit Credit 1 July 15 Accounts receivabila 17,000 Service revenue 17.000 2 2 July 31 Accounts receivable Bonus rarnivable 25,500 2,635 Service revenue 0 00 00 00 24,135 3 August 05 Cash 42,500 Accounts receivable 42.500 4 4 August 15 2,975 X Service ravanin Barus receivabla 2,975