During 2025, Cullumber Company started a construction job with a contract price of $1,590,000. The job was completed in 2027. The following information is available.

2025 2026 2027

Cost incurred to date $370,000 $869,790 $1,080,000

Estimated costs to complete 630,000 231,210 0

Billing to date 302,000 900,000 1,590,000

Collections to date 267,000 804,000 1,415,000

Compute the amount of gross profit to be recognized each year, assuming the percentage-of -completion method is used.

Gross profit recognized in 2025 $ ________________

Gross profit recognized in 2026 $ ________________

Gross profit recognized in 2027 $ ________________

Prepare all necessary journal entries for 2026.

Compute the amount of gross profit to be recognized each year, assuming the cost-recovery method is used.

Gross profit 2025 2026 2027

$______ $_______ $_______