Sanjeev enters into a contract offering variable consideration. The contract pays him $1,000/month for six...
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Sanjeev enters into a contract offering variable consideration. The contract pays him $month for six months of continuous consulting services. In addition, there is a chance the contract will pay an additional $ and a chance the contract will pay an additional $ 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 $ to What adjustment to revenue should Sanjeev recognize to account for that change in estimate? A Debit of $ B Credit of $ C Credit of $ D Debit of $
Sanjeev enters into a contract offering variable consideration. The contract pays him $month for six months of continuous consulting services. In addition, there is a chance the contract will pay an additional $ and a chance the contract will pay an additional $ 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 $ to What adjustment to revenue should Sanjeev recognize to account for that change in estimate?
A Debit of $
B Credit of $
C Credit of $
D Debit of $
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