A contractor sends a final billing report to a city requesting payment on a new fire station. City personnel inspect the building and approve payment of the accumulated retainage of $8 million. The total amount billed to the city for the project was $80 million. Which account and amount is debited to record the payment of the retainage to the contractor in a Capital Projects Fund?

Select one:

a. Expenditures - construction cost is debited for $72 million.

b. Expenditures - construction cost is debited for $8 million.

c. Retainage payable should be debited for $72 million.

d. Retainage payable should be debited for $8 million.