SoccerHawk Merchandise Inc. enters into a $6-$month contract to sell soccer balls to City Soccer. The contract contains the following price scale:

Sales Volume

Price per Soccer Ball

First $300$ soccer balls sold $$22$

Next $200$ soccer balls sold $19$

Next $250$ soccer balls sold $17$

Additional soccer balls sold $15$

On the date the contract is signed, SoccerHawk estimates based on past experience that there is a $20\%$ chance it will sell $450$ soccer balls, a $45\%$ chance it will sell $600$ soccer balls, and a $35\%$ chance it will sell $800$ soccer balls.

The company sells the following soccer balls during the $6-$month contract:

Number of Soccer Balls

Month $1155$

Month $260$

Month $3125$

Month $475$

Month $585$

Month $660$

Total sales $560$ balls

Required:

$1.$ On the date that the contract is signed should SoccerHawk make a journal entry? Why or why not?

$2.$ Determine the transaction price that SoccerHawk should use when recording monthly revenue.

$3.$ Prepare the journal entries for SoccerHawk assuming that City Soccer pays the amount due at the end of each month based on the sales to date.