Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below:

Contract amount$3,090,000Cost:20171,220,0002018620,000Gross profit:2017830,0002018420,000Contract billings:20171,545,00020181,545,000

ADH recognizes revenue upon completion of the contract.

What is the journal entry in 2018 to record revenue?

Multiple Choice

• Cost of construction2,050,000Gross profit1,040,000Revenue from long-term contracts3,090,000
• Accounts receivable1,545,000Revenue from long-term contracts1,545,000
• Construction in progress1,250,000Cost of construction1,840,000Revenue from long-term contracts3,090,000
• Construction in progress420,000Cost of construction620,000Revenue from long-term contracts1,040,000