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A. 33,800,000 B. 38,500,000 C. 40,000,000 D. 45,000,000 In 2020, ABS Construction Co. was contracted to building Village Company's private road network for P100,000,000. The
A. 33,800,000
B. 38,500,000
C. 40,000,000
D. 45,000,000
In 2020, ABS Construction Co. was contracted to building Village Company's private road network for P100,000,000. The project was estimated to be completed in two years and the contract provided for: a. 5% mobilization fee (to be deducted from the last billing) payable within 15 days after the signing of the contract; 10% retention provision on all billings, and b. Payment of progress billings within 10 days from acceptance. ABS, which uses the percentage of completion method of accounting, estimated a 25% gross margin on the project. By the end of 2020, ABS has presented progress billings corresponding to 50% of completion. All of the progress billings presented in 2020 were accepted except the last one for 10% weas accepted on January 5, 2021. With the exception of one bill for 8% which was due on January 7, 2021, all of the billings accepted in 2020 were settled. Payments made by Village Company in 2020 amounted toStep by Step Solution
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