When part of a progress payment for construction is withheld until final settlement of the contract, what account is credited?

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When part of a progress payment for construction is withheld until final settlement of the contract, the account credited is Contracts Payable-Retained Percentage. This account is created to reflect the amount withheld by the owner or general contractor to ensure that the contractor has completed the work satisfactorily and to cover any potential problems that may arise during the construction process.

When Part of a Progress Payment for Construction Is Withheld