When progress billings are made by a contractor on a long-term contract, what account is credited?
A) Contract Revenue, a revenue account
B) Contract Billings, a contra-asset account
C) Contract Receivable, an asset account
D) Contract Billings, a contra-revenue account

Question

Quizplus · Accepted Answer

Progress billings are credited to the "Contract Billings" account, which is a contra-asset account. This account offsets the "Construction in Progress" account to reflect the amount billed to the customer.

When Progress Billings Are Made by a Contractor on a Long-Term