C) Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.

During 2017, Pearl Company started a construction job with a contract price of $1,610,000. The job was completed in 2019. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date 2017 $434,300 575,700 301,000 271,000 2018 $859,560 242,440 897,000 817,000 2019 $1,073,000 -0- 1,610,000 1,428,000 Prepare all necessary journal entries for 2018. (Credit account titles are automatically indented whe incurred use account Materials, Cash, Payables.) Account Titles and Explanation Debit Credit Construction in Process 425600 Materials, Cash, Payables 425600 (To record cost of of construction.) Taccounts Receivable i 897000) | Billings on Construction in Process 897000 (To record progress billings.) Tcash 7 5460007 546000 546000 Accounts Receivable (To record collections.) Construction Expenses 425600 Construction in Process * Revenue from Long-Term Contracts 563840 (To recognize revenue.)