ow the journal entries that Areva Group will make for this contract in 2012, 2013 2014 2018, and 2019 for each of the revenue recognition methods examined in part a contr expected and actual cash collections and contract costs is as follows: e recognition for a contractor, On October 15, 2010, Flanikin Construction Company to build a shopping center at a contract price of $180 million. The schedule of Cash Collections from Customers Estimated and Actual Cost Incurred 36,000,000 $ 12,000,000 45,000,000 45,000,000 54,000,000 $180,000,000 36,000,000 48,000,000 24,000,000 $120,000,000 a. Calculate the amount of revenue, expense, and net income for each of the four years 0 under the following revenue recognition methods: (I) Percentage-of-completion method (2) Completed contract method. b. Show the journal entries Flanikin will make in 2010, 2011, 2012, and 2013 for this con- tract. Flanikin accumulates contract costs in a Contract in Process account. Although the costs involve a mixture of cash payments, credits to assets, and credits to liability accounts, assume for purposes of this problem that all costs are recorded as credits to Accounts Payable. c. Which method do you believe provides the better measure of Flanikin Construction Company's performance under the contract? Why? 49. Income recognition when collection from the customer is uncertain. Furniture Retailers sells furniture to retail customers, offering extended payment terms. In January 2013, a customer buys a full set of dining room and living room furniture for $8,400 on an installment plan, with no down payment and monthly payments of $400, beginning January 31, 2013. The to Furniture Retailers is $6,800. Furniture Retailers classifies Deferred