intermediate accounting 1

Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co. Relevant data are summarized below: Contract amount 000 000'E$ Cost: 2020 1, 200, 000 2021 600, 900 Gross profit: 2020 800, 080 2021 400, 060 Contract billings: 2020 1, 500, 000 2021 1, 506, 000 ADH recognizes revenue over time with respect to these contracts. For 2021, what is the Journal entry to record revenue? H Multiple Choice Construction in progress 400,000 Cost of construction 600,600 Revenue from long-term contracts 1,090,030 O Accounts receivable 1,500,000 cost of construction 600,090 Gross profit 600,090 Deferred revenue O Accounts receivable 1, 500, 090 Revenue from long-term contracts 1, 500,060 O Cost of construction Gross profit 1, 000, 090 Revenue from long-term contracts