Three years ago, the Smith Company entered into a contract to construct a building for a client. Smith uses the percentage-of-completion method (i.e. they recognize revenue over time). The details of the contract are summarized in the table below: Year 1 Year 2 Billings during year $ 4,000 $ 5,500 $ Cash collections during year $ 500 $ 3,500 $ Contract price $12,000 $12,000 Cost incurred in the year) $1,000 $6,000 Cost incurred (running balance) $1,000 $7,000 Estimated cost to complete $3,000 $3,000 QUESTION: In YEAR 1, Revenue is credited for... Year 3 2,500 8,000 $12,000 $3,000 $10,000 3,000 2,000 4,000 500 3,500 No revenue from the contract is credited in YEAR 1 None of the above is.cornell.choices are far from the correct