Prepare all journal entries to record construction costs, billings, collections, profit recognition, and any other entries for the periods 2022 and 2023. 2022 2023

Costs incurred during the year $ 550,000 $1,150,000

Estimated costs to complete 1,050,000 0

Billings during the year 500,000 1,500,000

Cash collections during the year 400,000 1,600,000

Assume that ACC 330 recognizes revenue on this contract over time according to percentage of completion.

Required:

Prepare all journal entries to record construction costs, billings, collections, profit recognition, and any other entries for the periods 2022 and 2023.