Your answer is incorrect. Assuming the same facts as those above except that Novak uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2021? Revenue recognized in 2021 Novak Construction Company uses the percentage of completion method of accounting. In 2020, Novak began work under contract #E2-D2, which provided for a contract price of $2,183,000. Other details follow: 2020 2021 Costs incurred during the year $618,540 $1,408,000 Estimated costs to complete, as of December 31 967,460 -0- Billings during the year 415,000 2,183,000 Collections during the year 344,000 1,481,000