On February $28,2024,$ Do It Right, a consulting firm, enters a contract to help Dr$.$ Coco Pop, a local pediatric dental provider, design a marketing strategy to compete with Gold Tooth Dental. The contract spans twelve months.$$ Dr$.$ Pop promises to pay $$15,000$ at the end of each month beginning in March.

At the end of the contract, Do It Right either will give Dr$.$ Love a refund of $$25,000$ or will be entitled to an additional $$25,000$ bonus, depending on whether services at Dr$.$ Love$$s practice at year$-$end have increased to a target level.

At the inception of the contract, Do It Right estimates an $75\%$ chance that it will earn the $$25,000$ bonus and calculates the contract price based on the expected value of future payments to be received.

At the beginning of the sixth month and after recording the July $31$st entry, circumstances change, and Do It Right revises to $65\%$ its estimate of the probability that it will earn the bonus.

Assume Do It Right has a June $30$th year$-$end.

Required $($Show your work to support amounts and do not round, show two decimal places unless the calculated amount is a whole dollar$)$:

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Journal Entry March $31,2024$

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Entry on August $1$st to adjust the bonus receivable and revenue based on the revised estimates for Do It Right.

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New August $31,2024$ entry

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Record the entry on February $28,2026,$ assuming Do It Right receive the bonus.

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Record the entry on February $28,2026$ assuming Do It Right do not receive the bonus.

After all entries have been recorded indicate the total revenue recognized under each scenario and explain why this makes sense.

Indicate amounts to be reported by Do It Right on June $30,2024$ on both the Balance sheet and Income statement.