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How to solve this question ? Starks firm wanted to construct a new parking lot and storage area and for that reason they signed a
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Starks firm wanted to construct a new parking lot and storage area and for that reason they signed a 5 Million contract with Lannister company limited. The work began during March 2022 and the project was completed by the end of 2024. You have the following notes related to each year: Year 1: at the end of 2022 the estimated total cost for the contract was 4,000,000 in which one quarter incurred by the end of 2022. The company billed the contractor with 30%(70% of billed amount was collected during the year) Year 2: at the end of 2023 total estimated cost increased by 30% from last year estimations and the company's cost to date were 3 Million. The company billed the contractor with 70% in both years (year 1 and year 2) (70% of billed amount was collected during year 1 and year 2) Year 3: the company finished the contract with total cost of 5.3 Million. The remaining of unbilled revenues was billed during the last year and only 5% remained uncollected. required: Fill in the following two tables: Percent of completion 2022 2023 2024 Year Total revenues Total cost Gross profit Account receivable balance Zero profit method 2022 2023 2024 Year Total revenues Total cost Gross profitStep by Step Solution
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