-/1 View Policies Current Attempt in Progress When there is a significant increase in the estimated total contract costs but the increase does not eliminate all profit on the contract, which of the following is correct? Under both the percentage-of-completion and the completed contract methods, the estimated cost increase requiresa current period adjustment of excess gross profit recognized on the project in prior periods Under the percentage-otpmpletion method only, the estimated cost increase requires a current period adjustment of excess gross profit recognized on the project in prior periods. Under the completed-contract method only the estimated cost increase requires a current period adjustment of excess gross profit recognized on the project in prior periods. No current period adjustment is required. eTextbook and Media Savefore Attempts of 1 used Sub -/1 View Policies Current Attempt in Progress How should the balances of progress billings and construction in process be shown at reporting dates prior to the completion of a long-term contract? O Progress Billings as deferred income, Construction in Progress as a deferred expense. O Progress Billings as income, Construction in Process as inventory Net balance, as a current asset if debit balance, and current liability if credit balance Net balance, as income from construction'if credit balance, and loss from construction if debit balance. e Textbook and Media Save for Later Attempts: 0 of 1 used Submit