A Note: the Most Likely Amount to Be Received Under

question 46

Essay

a. Note: The most likely amount to be received under the contract is 4 x $25,000 + $20,000 = $120,000 (since there is a 75% chance that the $20,000 payment will be received). Therefore, each month Wiggins would recognize $30,000 ($120,000 ÷ 4) of revenue, using the following journal entry:

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Definitions:

Plants

Plants are multicellular, predominantly photosynthetic eukaryotes of the kingdom Plantae, characterized by their ability to produce their own food through photosynthesis and their unique cell structures.

Fungi

A kingdom of heterotrophic organisms that includes yeasts, molds, and mushrooms, characterized by their chitin cell walls and absorptive nutrition.

Primates

An order of mammals that includes humans, apes, monkeys, and related species, characterized by large brains, forward-facing eyes, and opposable thumbs.

Humans

Homo sapiens; the only extant members of the subtribe Hominina, known for advanced cognitive abilities and societal structures.