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Sanjeev enters into a contract offering variable consideration. The contract pays him $2,000/month for six months of continuous consulting services. In addition, there is a

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Sanjeev enters into a contract offering variable consideration. The contract pays him $2,000/month for six months of continuous consulting services. In addition, there is a 70% chance the contract will pay an additional $3,500 and a 30% chance the contract will pay an additional $1,500, depending on the outcome of the consulting contract. Sanjeev concludes that this contract qualifies for revenue recognition over time. Assume that Sanjeev estimates variable consideration as the most likely amount. After Sanjeev has recognized revenue for two months of the contract, he changes his assessment of the chance the contract will pay him $5,000 to 50%. What adjustment to revenue should Sanjeev recognize to account for that change in estimate? Multiple Choice Credit of $500 Debit of $500 Debit of $2,000 Credit of $2,000

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