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The value of a contract was $1M and the specified retention was 10%. By September 30th, the contractor had finished 50% of the job. The
The value of a contract was $1M and the specified retention was 10%. By September 30th, the contractor had finished 50% of the job. The contractor billed the owner for $360,000 on September 30th and received $ 300,000 from the owner on October 10th. With the cash basis accounting method, when should the contractor recognize the income and for what amount?
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