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 Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 34E
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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?
Transcribed Image Text: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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