Sheridan Construction Company uses the percentage-of-completion method of accounting. In 2024, Sheridan began work on a contract it had received which provided for a contract price of $30500000. Other details follow: 2024 Costs incurred during the year $14640000 Estimated costs to complete as of December 31 9760000 Billings during the year 13000000 Collections during the year 8800000 What amount of gross profit should be recognized in 2024? $1220000 ○ $6100000 $3660000 ○ $15860000
Sheridan Construction Company uses the percentage-of-completion method of accounting. In 2024, Sheridan began work on a contract it had received which provided for a contract price of $30500000. Other details follow: 2024 Costs incurred during the year $14640000 Estimated costs to complete as of December 31 9760000 Billings during the year 13000000 Collections during the year 8800000 What amount of gross profit should be recognized in 2024? $1220000 ○ $6100000 $3660000 ○ $15860000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sheridan Construction Company uses the percentage-of-completion method of accounting. In 2024, Sheridan began work on a
contract it had received which provided for a contract price of $30500000. Other details follow:
2024
Costs incurred during the year
$14640000
Estimated costs to complete as of December 31
9760000
Billings during the year
13000000
Collections during the year
8800000
What amount of gross profit should be recognized in 2024?
$1220000
○ $6100000
$3660000
○ $15860000
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