Nvidia enters into a contract which pays $2,100/month for six months of services. In addition, there is a 70% chance thecontract will pay an additional $3,500 and a 30% chance the contract will pay an additional $1,500, depending on theoutcome of the contract.Assume Nvidia estimates variable consideration as the most likely amount. What is the amount of revenue Nvidia wouldrecognize for the first month of the contract?Note: Do not round intermediate calculations. Round final answer to whole dollars.Multiple Choice$2,100$2,450☐ $2,683

Revenue Recognition:When a company/ individual enters a contract to deliver a or group of…

contract which pays $2,100/month for six months of services. In addition, there is a 70% chance the additional $3,500 and a 30% chance the contract will pay an additional $1,500, depending Nvidia enters into a contract will pay an outcome of the contract. on the

contract which pays $2,100/month for six months of services. In addition, there is a 70% chance the additional $3,500 and a 30% chance the contract will pay an additional $1,500, depending Nvidia enters into a contract will pay an outcome of the contract. on the

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Nvidia enters into a contract which pays $2,100/month for six months of services. In addition, there is a 70% chance the
contract will pay an additional $3,500 and a 30% chance the contract will pay an additional $1,500, depending on the
outcome of the contract.
Assume Nvidia estimates variable consideration as the most likely amount. What is the amount of revenue Nvidia would
recognize for the first month of the contract?
Note: Do not round intermediate calculations. Round final answer to whole dollars.
Multiple Choice
$2,100
$2,450
☐ $2,683

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