On April $1,2018,$ Cleaning Services Inc. $($the $$Company$),$ entered into a contract with Office Buildings Co $($the $$Customer$)$ to provide cleaning and maintenance management services for all of the customer$$s commercial office space. The contract is for five years, and the price is fixed at $10,000$ per day. The Company$$s services all day to day maintenance, hiring of cleaning personnel, and some small improvements $($repainting$,$ upgrading carpets when needed, etc.$).$ The contract provides for integrated management services $($the $$integrated services$)$ over the term of the contract, with no specified services, $($ie$.$ Empty $200$ garbage pails$).$ Therefore, activities will vary day to day based on what cleaning and maintenance activities need to be performed. Therefore, integrated services transferred to the customer are substantially the same each period $($same benefit$).$

Two years later COVID$-19$ Pandemic was declared, and many companies allowed employees to work from home. This resulted in significantly less cleaning and maintenance requirements at Office Buildings Co$.$ As a result, Office Buildings Co and the Company renegotiated this cleaning and maintenance management agreement,. Both parties agreed to lower the price of $$8,000$ per day starting April $1,2020.$

Additional information includes:

$1.$ From the beginning, the contract met the criteria outlined in ASC $606-10-25-1$ to be accounted for as a contract with customer.

$2.$ Daily service met the criteria for recognizing service over time, with the same method of progress measurement. These integrated services met requirements of ASC $606-10-25-14($b$)$ and is accounted as a single performance obligation.

$3.$ No other terms were changed, and both parties agreed to the revised price for the remainder of the contract period.

$4.$ There is no history of price concessions, and this change in price is not related to a change in quality of services.

$5.$ There is no change in Office Buildings Co intent or ability to pay.

Create a Memo using the standard Accounting Memo Format. Include all relevant information and be sure to answer the following:

$1.$ Is the impact of COVID$19$ on the contract a change in facts and circumstances under ASC $606-10-25-5,$ require reassessment of whether the contract can be accounted for as a contract with a customer under ASC $606-10-25-1?$

$2.$ Does this represent a change in transaction price associated with variable consideration or contract modification?

$3.$ What is the appropriate accounting treatment for the price concession?