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Use this information to answer the following questions: On April 1, Sadie Associates enters into a contract to provide consulting services to LSU. The contract is anticipated to last five months and is intended to achieve significant cost savings at the university. The contract stipulates that LSU will pay Sadie Associates $55,000 at the end of each month, and, if total cost savings reach a specific target, LSU will pay an additional $60,000 to Sadie Associates at the end of the contract. Sadie Associates estimates an 80% chance that cost savings will reach the target. Assume that Sadie Associates estimates variable consideration as the expected value. Required: a. Prepare the journal entry on April 30th to record the first month of revenue under the contract. b. After three months, circumstance change, and Sadie Associates revises its estimate to a 70% chance that cost savings will reach the target. Prepare the journal entry, if any is necessary. c. Prepare the journal entry for the fourth month. d. Prepare the journal entry to record receipt of the $60,000 bonus on August 31. Use this information to answer the following questions: On April 1, Sadie Associates enters into a contract to provide consulting services to LSU. The contract is anticipated to last five months and is intended to achieve significant cost savings at the university. The contract stipulates that LSU will pay Sadie Associates $55,000 at the end of each month, and, if total cost savings reach a specific target, LSU will pay an additional $60,000 to Sadie Associates at the end of the contract. Sadie Associates estimates an 80% chance that cost savings will reach the target. Assume that Sadie Associates estimates variable consideration as the expected value. Required: a. Prepare the journal entry on April 30th to record the first month of revenue under the contract. b. After three months, circumstance change, and Sadie Associates revises its estimate to a 70% chance that cost savings will reach the target. Prepare the journal entry, if any is necessary. c. Prepare the journal entry for the fourth month. d. Prepare the journal entry to record receipt of the $60,000 bonus on August 31

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