To account for long-term construction project, how would the company reports the balances of progress billings and construction in process of an uncompleted long-term project on its financial statements?

A: Report Construction in Process account balance, netting off Progress Billings account balance, as current asset (or liability) on the balance sheet.

B: Report Construction in Process account balance, netting off Progress Billings account balance, as operating income (or loss) from long-term construction contract.

C: Progress Billings as deferred income, shown on the balance sheet, Construction in Process as a deferred expense, shown on the balance sheet.

D: Progress Billings as accounts receivable, shown on the balance sheet, Construction in Process as inventory, shown on the balance sheet.