Please Answer no. 6 and 7Provide a complete solution Thank You Diamond Builders uses the percentage of completion method in accounting for its.long-term contracts. During 2019, Diamond Builders started work on a P10Mfixed price project. As of December 31, 2019 costs incurred amounts to P3,175,000.This amount includes P200,000 costs of materials stored in the warehouse intendedfor the next stage of construction sometime 1st quarter of 2020. The engineer'sestimate of construction costs at completion is P8.5M. Diamond billed the client30% of contract price and collected the same amount.In 2020, Diamond Builders incurred P3,575,000 more and billed the customerP3.3M At the end of the year, the estimated cost to complete is still P2,250,000.6. On December 31, 2019, the contract Asset account has a ledger balance ofP3,175,000P3,500,000P2,975,000d. P3,736,000a.C.b.000,007. In 2020, the contract revenue and contract costs isP7,500,000, P6,750,000P4,000,000; P3,775,000P4,000,000, P3,575,000Not givenС.a.b.d.ABS Construction Company recognizes revenue and expenses using thepercentage of completion method. During 2019 a single long term project wasbegun which continued through 2020. Information on the project at the end ofyear follows:

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Diamond Builders uses the percentage of completion method in accounting for its long-term contracts. During 2019, Diamond Builders started work on a P10M fixed price project. As of December 31, 2019 costs incurred amounts to P3,175,000. This amount includes P200.000 costs of materials stored in the warehouse intended for the next stage of construction sometime 1st quarter of 2020. The engineer's estimate of construction costs at completion is P8.5M. Diamond billed the client 30% of contract price and collected the same amount. osl o to b In 2020, Diamond Builders incurred P3,575,000 more and billed the customer P3.3M At the end of the year, the estimated cost to complete is still P2,250,000. 6. On December 31, 2019, the contract Asset account has a ledger balance of P3,175,000 P3,500,000 c. P2,975,000 0d. P3,736,000 a. b. 7. In 2020, the contract revenue and contract costs is P7,500,000, P6,750,000 S C. P4,000,000, P3,575,000 a. b. P4,000,000; P3,775,000 d. Not given ABS Construction Company recognizes revenue and expenses using the percentage of completion method. During 2019 a single long term project was begun which continued through 2020. Information on the project at the end of year follows: