Carla Vista Construction Company began work on a $420,000 construction contract in 2025. During 2025, Carla Vista incurred costs of $267,500, billed its customer for $201,500, and collected $176,000. At December 31, 2025, the estimated additional costs to complete the project total $157,575.

Prepare Carla Vistas journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the cost-recovery method.

Account Titles and Explanation Debit Credit

(a)

(b)