Nichols Construction Company (NCC)entered into a contract to build a shopping complex for $1,900,000.Construction commenced on July 1,2017,with a planned completion date of December 31,2019.A summary of the related accounting information is provided below:

How much would the balance in accounts receivable be on the balance sheet of NCC at the end of 2018 if NCC uses the percentage of completion method?
A)$130,000
B)$390,000
C)$790,000
D)$1,100,000

Question

Nichols Construction Company (NCC)entered into a contract to build a shopping complex for $1,900,000.Construction commenced on July 1,2017,with a planned completion date of December 31,2019.A summary of the related accounting information is provided below:

How much would the balance in accounts receivable be on the balance sheet of NCC at the end of 2018 if NCC uses the percentage of completion method?
A)$130,000 
B)$390,000 
C)$790,000 
D)$1,100,000

Quizplus · Accepted Answer

B)($560,000 + $640,000)- ($500,000 + $310,000)= $390,000

Nichols Construction Company (NCC)entered into a Contract to Build a Shopping