3. BU Contractors received a contract to construct an office building for $5,000,000. Construction was begun in 2021 and completed in 2023. BU has a calendar year end. Cost and other data are presented below:

2021 2022 2023

Cost Incurred during the year 1,100,000 2,800,000 700,000

Estimated costs to complete at 12/31 3,300,000 975,000

Billings during the year 1,500,000 2,700,000 800,000

Cash collections during the year 1,350,000 2,750,000 900,000

BU recognizes revenue over time according to percentage of completion.

Required: 1. Prepare all journal entries to record costs, billings, collections, and profit recognition. 2. Compute the Gross Profit on the job for each year.

3.Compute the ending Accounts Receivable for each year.