Pronghorn, Inc. began work on a $7,579,000 contract in 2017 to construct an office building. During 2017, Pronghorn, Inc. incurred costs of $1,865,850, billed its customers for $1,081,000, and collected $1,022,000. At December 31, 2017, the estimated additional costs to complete the project total $3,465,150.

Prepare Pronghorns 2017 journal entries using the percentage-of-completion method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For costs incurred use account Materials, Cash, Payables. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

(To record costs incurred.)

(To record billings.)

(To record collections.)

(To recognize revenue.)