When Progress Billings are made by a contractor on a long-term contract,what account is credited?
A) Contract Billings,a contra-asset account
B) Contract Revenue,a revenue account
C) Contract Receivable,an asset account
D) Contract Billings,a contra-revenue account

Question

Quizplus · Accepted Answer

Progress Billings represent amounts billed to the customer for work performed to date but not yet invoiced. Therefore, the contra-asset account Contract Billings is credited to record the increase in the amount billed but not yet earned.

When Progress Billings Are Made by a Contractor on a Long-Term