Archer Construction Company began work on a $420,000 construction contract in 2012. During 2012, Archer incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At December 31, 2012, the estimated future costs to complete the project total $162,000.
Prepare Archer's journal entry to record profit or loss using
(a) The percentage-of-completion method and
(b) The completed-contract method, if any.