15. Under the percentage - of- completion method , how should the balances of progress billings and construction in process be disclosed in the financial statements prior to the completion of the Contract ?" a ) progress billings as deferred income , construction in progress as a deferrEd EXPENSE 1 ) progress billings as income , construction in process as Inventory [ ) net , as a current asset it a debit balance , and a current liability if a credit balance net , as income from construction if a credit balance , and loss from construction if a debit balance