During 2020, Splish Company started a construction job with a contract price of $1,620,000. The job was completed in 2022. The following information is available.

1. compute the amount of gross profit to be recognized each year, assuming the percentage or completion method is used.

2. prepare all the necessary entries for 2021.

2021 2022 Costs incurred to date Estimated costs to complete Billings to date Collections to date 2020 $373,700 636,300 303,000 273,000 $902,000 198,000 899,000 807,000 $1,070,000 -0- 1,620,000 1,412,000