28 29 100 110 QUESTION 3 Under the percentage-of-completion method, how should the balances of Billings on Construction in Process and Construction in Process be reported prior to the completion of a long-term contract? A Net, as a current asset il a debit balance, and as a current liability if a credit balance. B. Billings on Construction in Process as a deferred revenue and Construction in Process as a deferred expense Billings on Construction in Process as revenue and Construction in Process as inventory D. Ballings on Construction in Process as revenue and Construction in Process as inventory . QUESTION 4 in accounting for a long-term construction type contract using the percentage of completion method, the gross prot recognized ouring the first year would be the estimated total gross profit from the contract, multiplied by the costs incurred during the year as the percentage of A total contract price total estimated cost unbilled portion of the contract price total costs incurred to date