[Solved] Assume That Sanjeev Estimates Variable Consideration as the Most Likely

Question 123
Multiple Choice

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 $3,000 to 70%.What adjustment to revenue should Sanjeev recognize to account for that change in estimate?

A)Debit of $1,000
B)Debit of $334
C)Credit of $1,000
D)Credit of $334

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