Pharoah, Inc. began work on a $7,579,000 contract in 2020 to construct an office building. During 2020, Pharoah, Inc. incurred costs of $1,865,850, billed its customers for $1,081,000, and collected $1,022,000. At December 31, 2020, the estimated additional costs to complete the project total $3,465,150. Prepare Pharoahs 2020 journal entries using the percentage-of-completion method.

Account Titles and Explanation	Debit	Credit
Construction in Process	1865850
		1865850
(To record costs incurred.)
Accounts Receivable	1081000
Billings on Construction in Process		1081000
(To record billings.)
Cash	1022000
Accounts Receivable		1022000
(To record collections.)
Construction in Process
Construction Expenses	1865850
Revenue from Long-Term Contracts
(To recognize revenue.)