Ying Construction Company entered into a contract to build a new airport terminal for $2,500,000.Construction commenced on August 1,2017,with a planned completion date of December 31,2019.A summary of the costs,billings,and collections is provided below:

Ying uses the percentage of completion method.What amount would appear as accounts receivable on Ying's December 31,2018 balance sheet?
A)$100,000
B)$140,000
C)$1,000,000
D)$1,400,000

Question

Ying Construction Company entered into a contract to build a new airport terminal for $2,500,000.Construction commenced on August 1,2017,with a planned completion date of December 31,2019.A summary of the costs,billings,and collections is provided below:

Ying uses the percentage of completion method.What amount would appear as accounts receivable on Ying's December 31,2018 balance sheet?

Ying uses the percentage of completion method.What amount would appear as accounts receivable on Ying's December 31,2018 balance sheet?
A)$100,000 
B)$140,000 
C)$1,000,000 
D)$1,400,000

Quizplus · Accepted Answer

C)$440,000 + $1,000,000 - $400,000 - $900,000 = $140,000

Ying Construction Company Entered into a Contract to Build a New