Jett Baby Wong Constructors, Inc. has consistently used the percentage-of-completion method ofrecognizing income. In 2017, Jett started work on a P35,000,000 construction contract that was completedin 2018. The following information was taken from Jett's 2017 accounting records:Progress billingsCosts incurredP11.000,00010,500,0007,000,000Estimated costs to complete 21.000,000CollectionsWhat amount of gross profit should Jett have recognized in 2017 on this contract?

Under percentage of completion method , the completion % is calculated by dividing the cost incurred…

Answered: 2017, Jett started work on a…

2017, Jett started work on a P35,000,000 co nformation was taken from Jett's 2017 acco P11.000,000 10,500,000 7,000,000 plete 21.000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Jett Baby Wong Constructors, Inc. has consistently used the percentage-of-completion method of
recognizing income. In 2017, Jett started work on a P35,000,000 construction contract that was completed
in 2018. The following information was taken from Jett's 2017 accounting records:
Progress billings
Costs incurred
P11.000,000
10,500,000
7,000,000
Estimated costs to complete 21.000,000
Collections
What amount of gross profit should Jett have recognized in 2017 on this contract?

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