Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to leadvarious tours that Wilderness sells. Rockit will receive a $190 bonus per tour day it guided during the previous month if its service during that month received an averageevaluation of "excellent" by Wilderness customers. The $1,900 per day and any bonus due are paid in one lump payment shortly aftereceives $1,900 per tour day, and shortly after the end of each month Rocky learns whetherthe end of each month.• On July 1, based on prior experience, Rocky estimated there is a 40% chance it will earn the bonus for July tours. It guided a total of10 days from July 1-July 15.• On July 16, based on Rocky's view that it had provided excellent service during the first part of the month, Rocky revised its estimateto an 90% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16–July 31.• On August 5 Rocky learned it did not receive an average evaluation of "excellent" for its July tours, so it would not receive anybonus for July, and received all payment due for the July tours.Rocky bases estimates of variable consideration on the expected value it expects to receive.Required:1. to 3. Prepare the journal entries to record the transactions above. (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field.)Answer is not complete.NoDateGeneral JournalDebitCreditJuly 15Accounts receivable19,0001Sales revenue28,500July 31Accounts receivable4,750 XBonus receivable33,250 XService revenueAugust 05Cash47,500347,500Accounts receivable4,750 X4August 05Service revenue4,750 XBonus receivable< Prev8 of 9Next > ky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to leadous tours that Wilderness sells. Rocky receives $1,900 per tour day, and shortly after the end of each month Rocky learns whetherill receive a $190 bonus per tour day it guided during the previous month if its service during that month received an averagealuation of "excellent" by Wilderness customers. The $1,900 per day and any bonus due are paid in one lump payment shortly aftere end of each month.On July 1, based on prior experience, Rocky estimated there is a 40% chance it will earn the bonus for July tours. It guided a total of10 days from July 1–July 15.On July 16, based on Rocky's view that it had provided excellent service during the first part of the month, Rocky revised its estimateto an 90% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16–July 31.• On August 5 Rocky learned it did not receive an average evaluation of “excellent" for its July tours, so it would not receive anybonus for July, and received all payment due for the July tours.Rocky bases estimates of variable consideration on the expected value it expects to receive.Required:1. to 3. Prepare the journal entries to record the transactions above. (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field.)Answer is not complete.DebitCreditGeneral JournalNoDate19,000July 15Accounts receivableSales revenue28,5002July 31Accounts receivable4,750 XBonus receivable33,250 xService revenue47,5003August 05Cash47,500Accounts receivable< Prev8 of 9Next >出

Accounts receivable are the money owed to a company by its customers. This happens because of…

Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead receives $1,900 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $190 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $1,900 per day and any bonus due are paid in one lump payment shortly after various tours that Wilderness sells. Rock the end of each month. • On July 1, based on prior experience, Rocky estimated there is a 40% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1–July 15. • On July 16, based on Rocky's view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 90% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16-July 31. • On August 5 Rocky learned it did not receive an average evaluation of "excellent" for its July tours, so it would not receive any bonus for July, and received all payment due for the July tours. Rocky bases estimates of variable consideration on the expected value it expects to receive. Required: 1. to 3. Prepare the journal entries to record the transactions above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q