Compute the amount of gross profit to be recognized each


Question - During 2017, Pearl Company started a construction job with a contract price of $1,580,000. The job was completed in 2019. The following information is available.

2017 2018 2019

Costs incurred to date $404,000 - $853,160 - $1,073,000

Estimated costs to complete 606,000 - 254,840 -0-

Billings to date 301,000 - 904,000 - 1,580,000

Collections to date 271,000 - 812,000 - 1,418,000

Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

Gross profit recognized in 2017

Gross profit recognized in 2018

Gross profit recognized in 2019

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Accounting Basics: Compute the amount of gross profit to be recognized each
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