55.

Blossom Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $900000 each quarter. The total contract price is $17898000 and Blossom estimates total costs of $17100000. Blossom estimates that the building will take 3 years to complete, and commences construction on January 2, 2021. At December 31, 2021, Blossom estimates that it is 20% complete with the construction, based on costs incurred. What is the total amount of Revenue from Long-Term Contracts recognized for 2021 and what is the balance in the Accounts Receivable account assuming Cannon Company has not yet made its last quarterly payment?

Revenue

Accounts Receivable

a. $3579600

$900000

b. $3420000

$900000

c. $5966000

$5966000

d.$3420000

$5966000