X Revenue Recognition (Recommended Time Allocation: 30 Minutes. 20 Marks.) Rookie Construction Limited (RCL) entered into a contract to construct a building for $975,000. The contract provided for progress payments. RCL's accounting year ends December 31. Work began under the contract on August 1, 2019, and was completed on October 31, 2021. RCL uses the percentage-of- completion method to account for this long-term contract. Construction activities are summarized below: Construction costs incurred to date Estimated remaining costs to complete Progress Billings during the year Cash Collections to date 2019 180,000 630.000 163.000 140,000 2020 630.000 190.000 362,500 430.500 2021 625.000 0 4900 975.000 Required: (round calculations to the nearest whole number) 1. Prepare the journal entries that should be recorded for 2020. Assume that all of the 2019 journal entries have been properly recorded 2. What should be the balance of Accounts Receivable at December 31, 2020? 3. If the estimated remaining costs to completo were $805 000, instead of 5630,000, as of December 31. 2019 answer the following questions a. How much revenue should be reported by RCL for 20192 b. How much profit doss) should be reported by RCL for 20197