True Tech enters into a contract with ProSport Gaming to add ProSport's online games to the Tri-Net network. The terms of the contract are: On January 1, 2021, ProSport pays TrueTech an up-front fixed fee of $300,000 for six months of featured access ProSport also will pay TrueTech a bonus of $180,000 if Tri-Net users access ProSport games for at least 15,000 hours during the six-month period TrueTech estimates a 75% chance that it will achieve the usage target and receive the $180,000 bonus. Suppose TrueTech uses the most likely amount method to determine the transaction price that depends on future events. The amount of service revenue True Tech should recognize on January 1, 2021 is $300,000 $480,000 $180,000 None of the above is correct. Which of the following is not true about accounting for long-term construction contracts? When a customer is billed for payment due, billings on contracts in progress is credited at the same time accounts receivable is debited. Long-term construction contracts could show a contract asset or contract liability, depending on the relation between construction in progress and billings. Gross profit is debited to construction in progress. Billings on contracts in progress is a contra account to accounts receivable. TrueTech enters into a contract with ProSport Gaming to add ProSport's online games to the Tri-Net network. The terms of the contract are: On January 1, 2021, ProSport pays TrueTech an up-front fixed fee of $300,000 for six months of featured access ProSport also will pay TrueTech a bonus of $180,000 if Tri-Net users access ProSport games for at least 15,000 hours during the six-month period TrueTech estimates a 75% chance that it will achieve the usage target and receive the $180,000 bonus. Suppose TrueTech uses the expected value method to determine the transaction price that depends on the outcomes of future events. The service revenue that TrueTech should recognize for January 2021 is $80,000 $50,000 $69,500 $72,500 Activate Windows