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		$	3,000,000
Cost:	2017		1,200,000
	2018		600,000
Gross profit:	2017		800,000
	2018		400,000
Contract billings:	2017		1,500,000
	2018		1,500,000

ADH recognizes revenue over time with respect to these contracts. What would be the journal entry made in 2017 to record revenue?

Accounts receivable	1,500,000
Billings in excess of cost	300,000
Revenue for long-term contracts		1,800,000

Construction in progress	800,000
Cost of construction	1,200,000
Revenue from long-term contracts		2,000,000

Accounts receivable	2,300,000
Gross profit		800,000
Revenue from long-term contracts		1,500,000

Accounts receivable	1,500,000
Revenue from long-term contracts		1,500,000