Coquel company has a non cancellable contract to construct a bridge for an estimated cost of $19,50,000.the contract is to start in July 2020, and the bridge is to be completed in September 2022. The following data pertain to the construction period. Assume that progress billings are non refundable.

1.Costs to date(2020)$360,000 (2021)$900,000 (2022)$390,000

2.Estimated costs to complete (2020)$12,60,000 (2021)$380,000 (2022)$0

3.progress billings during the year (2020)$305,000 (2021)765,000 (2022)$12,00,000

4.cash collected during the year (2020)$280,000 (2021)$760,000 (2022)$20,00,000

Required:

Assuming that Coquel company uses the percentage of completion method prepare the appropriate journal entries.