need #15

Three years ago, the Smith Company entered into a contract to construct a building for a client. Smith uses the percentage-of-completion method (i.e. they recognize revenue over time). The details of the contract are summarized in the table below: $ Billings during year Cash collections during year Contract price Cost incurred in the year) Cost incurred (running balance) Estimated cost to complete Year 1 4,000 $ 500 $ $12,000 $1,000 $1,000 $3,000 Year 2 5,500 $ 3,500 $ $12,000 $6,000 $7,000 $3,000 Year 3 2,500 8,000 $12,000 $3,000 $10,000 QUESTION: In YEAR 1, Revenue is credited for... 3,000 2,000 4,000 500 3,500 No revenue from the contract is credited in YEAR 1 None of the above is correct, all choices are far from the correct answer Question 15 (12 points) (continued from the previous problem) Which of the following will appear on the Balance Sheet for the Year 1 (select all that apply - i.e., just one or as many as all of them)? Accounts Receivable: $3,500 Accounts Receivable: $4,000 A liability account with a $1,000 balance Construction in progress net of billings: $1,000