CRO Inc. undertakes a 5 year long-term contract that qualifies for revenue recognition using the percentage completion method. The contract revenue is $4,000,000 and in the first year, the firm incurred $300,000 worth of costs and billed the customer for $500,000. The estimated total cost of the project at the end of the first year is $1,000,000. What is the amount of gross profit recognized by CRO at the end of the first year? Provide the journal entries associated with revenue recognition at the end of the first year.