Lafarge entered a contract to build a bridge for the Road Development Service (RDS) and started the project in 2017. Lafarge billed the customer K30,000,000 in each of the first two years, and RDS paid these invoices in full amount by the end of 2018. The 2017 balance of the Construction in Progress account was K32,000,000, and the 2018 actual cost was K31,000,000. Suppose Lafarge determined that the 2018 gross profit on the project would be K4,000,000. Which of the following statements is incorrect? a. Lafarge would report a current liability "billings in excess of cost plus gross profit" in the amount of K4,000,000. O b. The K4,000,000 gross profit would be debited to Construction in Progress. c. The 2018 balance for Accounts Receivable was 0. O d. Lafarge would report a current asset "cost plus gross profit in excess of billings" in the amount of K7,000,000. WWW

Lafarge entered a contract to build a bridge for the Road Development Service (RDS) and started the project in 2017. Lafarge billed the customer K30,000,000 in each of the first two years, and RDS paid these invoices in full amount by the end of 2018 . The 2017 balance of the Construction in Progress account was K32,000,000, and the 2018 actual cost was K31,000,000. Suppose Lafarge determined that the 2018 gross profit on the project would be K4,000,000. Which of the following statements is incorrect