Arizona Desert Homes (ADH) constructed a new subdivision during 2010 and 2011 under contract with Cactus Development Co. Relevant data are summarized below:

ADH uses the percentage-of-completion method to recognize revenue.

What would be the journal entry made in 2010 to record revenue?

Select one:

a. Option B

b. Option A

c. Option D

d. Option C

$3,000,000 1,200,000 600,000 800,000 400,000 1,500,000 Contract amount Cost Gross profit Contract 2010 2011 2010 2011 2010 billings 2011 1,500,000