On February $1,2024,$ Arrow Construction Company entered into a three$-$year construction contract to build a bridge for a price of $$8,500,000.$ During $2024,$ costs of $$2,200,000$ were incurred, with estimated costs of $$4,200,000$ yet to be incurred. Billings of $$2,740,000$ were sent, and cash collected was $$2,450,000.$

In $2025,$ costs incurred were $$2,740,000$ with remaining costs estimated to be $$3,900,000.2025$ billings were $$2,990,000,$ and $$2,675,000$ cash was collected. The project was completed in $2026$ after additional costs of $$4,000,000$ were incurred. The company$$s fiscal year$-$end is December $31.$ This project does not qualify for revenue recognition over time.