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Question
Andlewood Construction Inc. recognizes revenue over time according to percentage of completion for its long-term construction contracts. In 2018, Sandlewood began work on a $10,000,000 construction contract, which was completed in 2019. The accounting records disclosed the following data at the end of 2018:
Costs incurred$5,400,000
Estimated cost to complete 3,600,000
Progress billings 4,100,000
Cash collections 3,200,000
In addition to accounts receivable, what would appear in the 2018 balance sheet related to the construction accounts?
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