Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co. Relevant data are summarized below:

Contract amount		$	3,000,000
Cost:	2020		1,200,000
	2021		600,000
Gross profit:	2020		800,000
	2021		400,000
Contract billings:	2020		1,500,000
	2021		1,500,000

ADH recognizes revenue over time with respect to these contracts. For 2021, what is the journal entry to record revenue?

Multiple Choice

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

• Construction in progress	400,000
  Cost of construction	600,000
  Revenue from long-term contracts		1,000,000

• Cost of construction	2,000,000
  Gross profit	1,000,000
  Revenue from long-term contracts		3,000,000

• Accounts receivable	1,500,000
  Cost of construction		600,000
  Gross profit		600,000
  Deferred revenue		300,000