In late April, the Acme Construction Co. submitted a $1,200,000 progress billing on a construction contract. On May 2, the bill was approved for payment, subject to a ten percent retention, as provided by the contract. The amount that should be debited to Construction Expenditures is:

Question

Quizplus · Accepted Answer

The amount debited to Construction Expenditures reflects the total cost incurred, which is $1,200,000, regardless of the retention amount. The retention affects the cash paid, not the expenditure recorded.

In Late April, the Acme Construction Co