Marsh Contractors uses the percentage-of-completion method to account for the contract revenue and expense in each reporting period.

On Feb. 1, 2020, Marsh Contractors agrees to construct a building at a contract price of $17,400. At the end of 2020, Marsh summarizes the contract info as follows:

As of the end of 2020

Total Costs incurred during the year. $4,500

Estimated costs to complete $7,500

The journal entry to record the revenue and gross profit for 2020 would include a:

A: a credit Billings on construction in process by $6,525

B: a debit to Billings on construction in process by $4,500

C: a credit to Construction Expense by $4,500

D: a debit to Construction in Process by $2,025