When progress billings are sent on a long-term contract, what type of account should be credited under the completed contract method and percentage-of-completion method? $\begin{array}{|l|l|l|}
\hline &\text { Completed contract } & \text { Percentage-of-completion } \
\hline 1&\text { Contra asset } & \text { Revenue } \
\hline 2&\text { Contra asset } & \text { Contra asset } \
\hline 3&\text { Revenue } & \text { Revenue } \
\hline 4&\text { Revenue } & \text { Contra asset } \
\hline
\end{array}$
A) Choice 1
B) Choice 2
C) Choice 3
D) Choice 4

Question

Quizplus · Accepted Answer

Under both the completed contract and percentage-of-completion methods, progress billings are credited to a contra asset account, typically called "Billings on Construction in Progress," which offsets the "Construction in Progress" asset account.

When Progress Billings Are Sent on a Long-Term Contract, What