Noah Construction Company is building a large complex for a contract price of $ This is a threeyear project and the requirements for recognizing revenue over time are met. The total estimated cost of the project is $ and the following information is available:
Which one of the following entries would be made in Year to record the costs incurred assuming revenue is recognized over time?
A DR Inventory: Construction in progress $ Accounts payable, cash, etc. $
B DR Inventory: Construction in progress $ Income on longterm construction contract $
C DR Inventory: Construction in progress $ Billings $
D DR Income on longterm construction contract $ Accounts payable, cash, etc. $
