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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The Answer of 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:

A Note: the Most Likely Amount to Be Received Under