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 2019 if NCC uses the percentage of completion method?
A)$0
B)$250,000
C)$290,000
D)$800,000

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 2019 if NCC uses the percentage of completion method?
A)$0 
B)$250,000 
C)$290,000 
D)$800,000

Quizplus · Accepted Answer

C)($440,000 + $660,000+800,000)- ($310,000 + $500,000 + 800,000)= $290,000

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