Refer to Camey Construction.How much should Camey recognize as Accounts Receivable at the end of Year 1 assuming the use of the percentage-of-completion method?
A)$500,000
B)$1,000,000
C)$1,500,000
D)$2,000,000

Question

Quizplus · Accepted Answer

Under the percentage-of-completion method, Camey should recognize accounts receivable based on the percentage of the project completed. If the total contract value is $2,000,000 and 50% of the work is completed by the end of Year 1, then $1,000,000 should be recognized as accounts receivable.