Question
Downtown Company has consistently used the percentage-of-completion method of recognizing income. In 2018, Downtown started on an $18,000,000 construction contract that was completed in 2020.
Downtown Company has consistently used the percentage-of-completion method of recognizing income. In 2018, Downtown started on an $18,000,000 construction contract that was completed in 2020. The following information was taken from Downtowns 2018 accounting records:
Progress billing $ 6,600,000
Costs incurred $ 5,400,000
Collections $ 4,200,000
Estimated costs to complete $10,800,000
What amount of revenue should Downtown recognize on the contract in 2018?
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th Edition
978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018
