Using the information provided in RE18-3, prepare the journal entries to record Year 1’s (a) Construction costs,(b) Partial billings, (c) Cash collections, (d) Gross profit.In RE18-3, Clorad Corporation uses the percentage-of-completion method of accounting for construction contracts. Using the following information for Year 1, compute Clorad’s Year 1 (of four-year project):_____________________________________Construction costs incurred during the year ……… $ 174,000Estimated costs to complete the contract ………. 426,000Partial billings to customers ……………. 100,000Collections from customers ……………. 25,000Total contract price ……………… 1,000,000View Solution:
Using the information provided in RE18 3 prepare the journal entries



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