During 2025, Ivanhoe Company started a construction job with a contract price of $1,610,000. The job was completed in 2027. The following information is available. 2025 2026 2027 Costs incurred to date $383,800 $905,280 $1,063,000 Estimated costs to complete 626,200 198,720 -0- Billings to date 302,000 896,000 1,610,000 Collections to date 271,000 817,000 1,419,000 (a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. Your answer is correct. Gross profit recognized in 2025 Gross profit recognized in 2026 Gross profit recognized in 2027 +A 228000 +A $ 186920 to 132080 Prepare all necessary journal entries for 2026. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. For costs incurred use account Materials, Cash, Payables. List all debit entries before credit entries.) Account Titles and Explanation Construction in Process Materials, Cash, Payables (To record cost of construction.) Accounts Receivable Billings on Construction in Process (To record progress billings.) Cash Accounts Receivable (To record collections.) Construction in Process Construction Expenses Revenue from Long-Term Contracts Debit 521480 594000 546000 186920 521480 Credit 521480 594000 546000 708400 Compute the amount of gross profit to be recognized each year, assuming the cost-recovery method is used. Gross profit to $ 2025 600000 2026 506000 +A 2027 547000