Question: Aggie enters into a contract offering variable consideration. The contract pays him $4,400/month for six months of continuous consulting services. In addition, there is a

Aggie enters into a contract offering variable consideration. The contract pays him $4,400/month for six months of continuous consulting services. In addition, there is a 60% chance the contract will pay an additional $5,400 and a 40% chance the contract will pay an additional $6,400, depending on the outcome of the consulting contract. Aggie concludes that this contract qualifies for revenue recognition over time.

Aggie estimates variable consideration as the most likely amount. After the 6 months of consulting services has ended, Aggie received the bonus for $6,400. What adjustment to Revenue should Aggie recognize to account for this change?

Group of answer choices

Credit of $6,400

Debit of $5,400

Credit of $1,000

Debit of $1,334

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