Question
In 2020, ABS Construction Co. was contracted to building Village Company's private road network for $10,000,000. The project was estimated to be completed in two
In 2020, ABS Construction Co. was contracted to building Village Company's private road network for $10,000,000. The project was estimated to be completed in two years and the contract provided for:
a. 5% mobilization fee (to be deducted from the last billing) payable within 15 days after the signing of the contract; 10% retention provision on all billings, and
b. Payment of progress billings within 10 days from acceptance
ABS, which uses the percentage of completion method of accounting, estimated a 25% gross margin on the project. By the end of 2020, ABS has presented progress billings corresponding to 50% completion. All of the progress billings presented in 2020 were accepted except the last one for 10% was accepted on January 5,2021. With the exception of one bill for 8% which was due on January 7,2021, All of the buildings accepted in 2020 were settled. Payments made by Village Company in 2020 amounted to?:
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