Chapter 8, Problem 8.7BE

Estimating Variable Consideration. Sellet Billboard Company entered into an agreement to display billboard advertising for Hrghlife Incorporated for 10 months for a $60,000 fixed fee The agreement also includes a potential $6 000 bonus based on ceitain goals Sellet estimates that it is 70% likely to receive the entire bonus and 30% likely to receive none of the bonus What approach should Sellet use to estimate variable consideration? What is the estimate of the consideration amount in this contract?