Romano Services provides room-cleaning arrangements for hotels.On April 1, Swanky Hotels & Resorts signed an agreement tooutsource its room cleaning functions to Romano. The contractspecifies the service fee to be $45,000 per month, and all paymentsare to be made shortly after the end of each quarter. It alsospecifies that Romano will receive an additional quarterly bonus of$6,000, if during that quarter, Swanky receives no more than fivecomplaints from customers about room cleanliness. • On April 1,based on historical experience, Romano estimated that there is a75% chance that it will earn the quarterly bonus. • On May 5,Romano learned that, during March, there were two complaints fromcustomers related to room cleanliness. Based on this newinformation, Romano revised its estimate downward to 40% that itwould earn the quarterly bonus. • On June 30, Swanky notifiedRomano that, for the quarter ended, there were four complaintsassociated with room cleanliness, so Romano would receive thebonus. Two days later, Romano received all payments due for allservices rendered in the second quarter, including the bonus Romanoestimates any variable consideration on the expected value of theconsideration it expects to receive. 23. Prepare the requiredjournal entry for Romano Services on April 30th. The entryincludes: a. A debit to accounts receivable of $46,500 b. A debitto bonus receivable of $1,500 c. A credit to service revenue of$51,000 d. A credit to bonus receivable of $3,000 e. A debit tobonus receivable of $4,500 f. A debit to bonus receivable of $6,000g. A credit to deferred revenue of $93,000 h. None of the above 24.Prepare the required journal entry for Romano Services on May 30th.The entry includes: a. A debit to accounts receivable of $45,800 b.A debit to bonus receivable of $1,500 c. A debit to bonusreceivable of $800 d. A credit to service revenue of $15,400 e. Acredit to bonus receivable of $100 f. A debit to bonus receivableof $100 g. A credit to deferred revenue of $45,800 h. None of theabove 25. Prepare the required journal entry for Romano Services onJune 30th. The entry includes: a. A debit to bonus receivable of$4,400 b. A debit to accounts receivable of $46,600 c. A debit tobonus receivable of $800 d. A credit to service revenue of $51,000e. A credit to bonus receivable of $1,600 f. A debit to bonusreceivable of $800 g. A credit to deferred revenue of $138,800 h.None of the above Romano Services provides room-cleaningarrangements for hotels. On April 1, Swanky Hotels & Resortssigned an agreement to outsource its room cleaning functions toRomano. The contract specifies the service fee to be $45,000 permonth, and all payments are to be made shortly after the end ofeach quarter. It also specifies that Romano will receive anadditional quarterly bonus of $6,000, if during that quarter,Swanky receives no more than five complaints from customers aboutroom cleanliness. • On April 1, based on historical experience,Romano estimated that there is a 75% chance that it will earn thequarterly bonus. • On May 5, Romano learned that, during March,there were two complaints from customers related to roomcleanliness. Based on this new information, Romano revised itsestimate downward to 40% that it would earn the quarterly bonus. •On June 30, Swanky notified Romano that, for the quarter ended,there were four complaints associated with room cleanliness, soRomano would receive the bonus. Two days later, Romano received allpayments due for all services rendered in the second quarter,including the bonus Romano estimates any variable consideration onthe expected value of the consideration it expects to receive. 23.Prepare the required journal entry for Romano Services on April30th. The entry includes: a. A debit to accounts receivable of$46,500 b. A debit to bonus receivable of $1,500 c. A credit toservice revenue of $51,000 d. A credit to bonus receivable of$3,000 e. A debit to bonus receivable of $4,500 f. A debit to bonusreceivable of $6,000 g. A credit to deferred revenue of $93,000 h.None of the above 24. Prepare the required journal entry for RomanoServices on May 30th. The entry includes: a. A debit to accountsreceivable of $45,800 b. A debit to bonus receivable of $1,500 c. Adebit to bonus receivable of $800 d. A credit to service revenue of$15,400 e. A credit to bonus receivable of $100 f. A debit to bonusreceivable of $100 g. A credit to deferred revenue of $45,800 h.None of the above 25. Prepare the required journal entry for RomanoServices on June 30th. The entry includes: a. A debit to bonusreceivable of $4,400 b. A debit to accounts receivable of $46,600c. A debit to bonus receivable of $800 d. A credit to servicerevenue of $51,000 e. A credit to bonus receivable of $1,600 f. Adebit to bonus receivable of $800 g. A credit to deferred revenueof $138,800 h. None of the above Romano Services providesroom-cleaning arrangements for hotels. On April 1, Swanky Hotels& Resorts signed an agreement to outsource its room cleaningfunctions to Romano. The contract specifies the service fee to be$45,000 per month, and all payments are to be made shortly afterthe end of each quarter. It also specifies that Romano will receivean additional quarterly bonus of $6,000, if during that quarter,Swanky receives no more than five complaints from customers aboutroom cleanliness. • On April 1, based on historical experience,Romano estimated that there is a 75% chance that it will earn thequarterly bonus. • On May 5, Romano learned that, during March,there were two complaints from customers related to roomcleanliness. Based on this new information, Romano revised itsestimate downward to 40% that it would earn the quarterly bonus. •On June 30, Swanky notified Romano that, for the quarter ended,there were four complaints associated with room cleanliness, soRomano would receive the bonus. Two days later, Romano received allpayments due for all services rendered in the second quarter,including the bonus Romano estimates any variable consideration onthe expected value of the consideration it expects to receive. 23.Prepare the required journal entry for Romano Services on April30th. The entry includes: a. A debit to accounts receivable of$46,500 b. A debit to bonus receivable of $1,500 c. A credit toservice revenue of $51,000 d. A credit to bonus receivable of$3,000 e. A debit to bonus receivable of $4,500 f. A debit to bonusreceivable of $6,000 g. A credit to deferred revenue of $93,000 h.None of the above 24. Prepare the required journal entry for RomanoServices on May 30th. The entry includes: a. A debit to accountsreceivable of $45,800 b. A debit to bonus receivable of $1,500 c. Adebit to bonus receivable of $800 d. A credit to service revenue of$15,400 e. A credit to bonus receivable of $100 f. A debit to bonusreceivable of $100 g. A credit to deferred revenue of $45,800 h.None of the above 25. Prepare the required journal entry for RomanoServices on June 30th. The entry includes: a. A debit to bonusreceivable of $4,400 b. A debit to accounts receivable of $46,600c. A debit to bonus receivable of $800 d. A credit to servicerevenue of $51,000 e. A credit to bonus receivable of $1,600 f. Adebit to bonus receivable of $800 g. A credit to deferred revenueof $138,800 h. None of the above Romano Services providesroom-cleaning arrangements for hotels. On April 1, Swanky Hotels& Resorts signed an agreement to outsource its room cleaningfunctions to Romano. The contract specifies the service fee to be$45,000 per month, and all payments are to be made shortly afterthe end of each quarter. It also specifies that Romano will receivean additional quarterly bonus of $6,000, if during that quarter,Swanky receives no more than five complaints from customers aboutroom cleanliness. • On April 1, based on historical experience,Romano estimated that there is a 75% chance that it will earn thequarterly bonus. • On May 5, Romano learned that, during March,there were two complaints from customers related to roomcleanliness. Based on this new information, Romano revised itsestimate downward to 40% that it would earn the quarterly bonus. •On June 30, Swanky notified Romano that, for the quarter ended,there were four complaints associated with room cleanliness, soRomano would receive the bonus. Two days later, Romano received allpayments due for all services rendered in the second quarter,including the bonus Romano estimates any variable consideration onthe expected value of the consideration it expects to receive. 23.Prepare the required journal entry for Romano Services on April30th. The entry includes: a. A debit to accounts receivable of$46,500 b. A debit to bonus receivable of $1,500 c. A credit toservice revenue of $51,000 d. A credit to bonus receivable of$3,000 e. A debit to bonus receivable of $4,500 f. A debit to bonusreceivable of $6,000 g. A credit to deferred revenue of $93,000 h.None of the above 24. Prepare the required journal entry for RomanoServices on May 30th. The entry includes: a. A debit to accountsreceivable of $45,800 b. A debit to bonus receivable of $1,500 c. Adebit to bonus receivable of $800 d. A credit to service revenue of$15,400 e. A credit to bonus receivable of $100 f. A debit to bonusreceivable of $100 g. A credit to deferred revenue of $45,800 h.None of the above 25. Prepare the required journal entry for RomanoServices on June 30th. The entry includes: a. A debit to bonusreceivable of $4,400 b. A debit to accounts receivable of $46,600c. A debit to bonus receivable of $800 d. A credit to servicerevenue of $51,000 e. A credit to bonus receivable of $1,600 f. Adebit to bonus receivable of $800 g. A credit to deferred revenueof $138,800 h. None of the above Romano Services providesroom-cleaning arrangements for hotels. On April 1, Swanky Hotels& Resorts signed an agreement to outsource its room cleaningfunctions to Romano. The contract specifies the service fee to be$45,000 per month, and all payments are to be made shortly afterthe end of each quarter. It also specifies that Romano will receivean additional quarterly bonus of $6,000, if during that quarter,Swanky receives no more than five complaints from customers aboutroom cleanliness. • On April 1, based on historical experience,Romano estimated that there is a 75% chance that it will earn thequarterly bonus. • On May 5, Romano learned that, during March,there were two complaints from customers related to roomcleanliness. Based on this new information, Romano revised itsestimate downward to 40% that it would earn the quarterly bonus. •On June 30, Swanky notified Romano that, for the quarter ended,there were four complaints associated with room cleanliness, soRomano would receive the bonus. Two days later, Romano received allpayments due for all services rendered in the second quarter,including the bonus Romano estimates any variable consideration onthe expected value of the consideration it expects to receive. 23.Prepare the required journal entry for Romano Services on April30th. The entry includes: a. A debit to accounts receivable of$46,500 b. A debit to bonus receivable of $1,500 c. A credit toservice revenue of $51,000 d. A credit to bonus receivable of$3,000 e. A debit to bonus receivable of $4,500 f. A debit to bonusreceivable of $6,000 g. A credit to deferred revenue of $93,000 h.None of the above 24. Prepare the required journal entry for RomanoServices on May 30th. The entry includes: a. A debit to accountsreceivable of $45,800 b. A debit to bonus receivable of $1,500 c. Adebit to bonus receivable of $800 d. A credit to service revenue of$15,400 e. A credit to bonus receivable of $100 f. A debit to bonusreceivable of $100 g. A credit to deferred revenue of $45,800 h.None of the above 25. Prepare the required journal entry for RomanoServices on June 30th. The entry includes: a. A debit to bonusreceivable of $4,400 b. A debit to accounts receivable of $46,600c. A debit to bonus receivable of $800 d. A credit to servicerevenue of $51,000 e. A credit to bonus receivable of $1,600 f. Adebit to bonus receivable of $800 g. A credit to deferred revenueof $138,800 h. None of the above Romano Services providesroom-cleaning arrangements for hotels. On April 1, Swanky Hotels& Resorts signed an agreement to outsource its room cleaningfunctions to Romano. The contract specifies the service fee to be$45,000 per month, and all payments are to be made shortly afterthe end of each quarter. It also specifies that Romano will receivean additional quarterly bonus of $6,000, if during that quarter,Swanky receives no more than five complaints from customers aboutroom cleanliness. • On April 1, based on historical experience,Romano estimated that there is a 75% chance that it will earn thequarterly bonus. • On May 5, Romano learned that, during March,there were two complaints from customers related to roomcleanliness. Based on this new information, Romano revised itsestimate downward to 40% that it would earn the quarterly bonus. •On June 30, Swanky notified Romano that, for the quarter ended,there were four complaints associated with room cleanliness, soRomano would receive the bonus. Two days later, Romano received allpayments due for all services rendered in the second quarter,including the bonus Romano estimates any variable consideration onthe expected value of the consideration it expects to receive.Prepare the required journal entry for Romano Services on April30th, May 30th, June 30th