A company executes a sales contract for an agency on January $1,2024.$

The contract is expected to end on December $31,2025.$

Total contract value $$2,000,000.$

In $2024$:

The customer has issued a certificate of completed work for $60\%$ of the work items that have been performed.

The company issued an invoice of $$500,000$

Cost incurred: $$800,000$

Estimated costs incurred until the end of the contract are $$600,000$

Identify relevant criteria that need to be recorded for the $2024$ report.

Question $5.$ Revenue needs to be recorded:

$$1,200,000$

$$2,000,000$

$$1,000,000$

$$500,000$

Question $6.$ Expenses needs to be recorded:

$$840,000$

$$800,000$

$$880,000$

$$820,000$

Question $7.$ Profit needs to be recorded:

$$360,000$

$$340,000$

$$380,000$

$$300,000$

Question $8.$ Value of contract asset:

$$660,000$

$$2,000,000$

$$500,000$

$$1,200,000$