Tyco Ltd entered into a contract to build a sports arena for $1,800,000.Construction commenced on August 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 Tyco at the end of 2017 if Tyco uses the percentage of completion method?
A)$110,000
B)$60,000
C)$500,000
D)$660,000

Question

Tyco Ltd entered into a contract to build a sports arena for $1,800,000.Construction commenced on August 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 Tyco at the end of 2017 if Tyco uses the percentage of completion method?
A)$110,000 
B)$60,000 
C)$500,000 
D)$660,000

Quizplus · Accepted Answer

B)$560,000 - $500,000 = $60,000

Tyco Ltd Entered into a Contract to Build a Sports