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Sanjee enters into a contract offering variable consideration. The contract pays him $1100/month for six months of continuous consulting services. In addition, there is a

Sanjee enters into a contract offering variable consideration. The contract pays him $1100/month for six months of continuous consulting services. In addition, there is a 70% chance the contract will pay an additional $2800 and a 30% chance the contract will pay an additional $1200, depending on the outcome of the consulting contract. Sanjee concludes that this contract qualifies for revenue recognition over time. Assume that Sanjee estimates variable consideration as the most likely amount. After Sanjee has recognized revenue for two months of the contract, he changes his assessment of the chance the contract will pay him $5000 to 50%. What adjustment to revenue should Sanjee recognize to account for that change in estimate?

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