D In 2017, Arizona Desert Homes (ADH) entered into a contract to construct a new subdivision for Cactus Development Co. for $3,000,000. The subdivision was completed in 2018. Information related to the contact is as follows: 2017 2018 Cost incurred during the year 1,200,000 600,000 Estimated costs to complete as of year-end 600,000 -0- Billings during the year 1,500,000 1,500,000 Gross profit 800,000 400,000 ADH recognizes revenue over time according to percentage of completion with respect to this contract. Using the au nformation, 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 Accounts receivable 1.500.000 Revenue from long-term contracts 1.500,000 Construction in progress 800,000 Cost of construction 1.200,000 2,000,000 Revenue from long-term contracts Accounts receivable 2,300,000 800,000 Gross profit 1,500,000 Revenue from long-term contracts Using the above information, in its December 31, 2017, balance sheet, ADH would report: The contract asset, contract amount in excess of billings, of $1,500,000. The contract asset, cost and profits in excess of billings, of $500,000. The contract asset, deferred profit, of $400,000 The contract liability, billings in excess of cost of $300,000