During 2020, Smith Company began work on a construction project with a contract price of $1,600,000. Like most of Smith’s construction projects, the completion time on the project is expected to be between 18 and 24 months

		2020		2021		2022
Costs incurred to date		$373,700		$902,000		$1,070,000
Estimated costs to complete		636,300		198,000		–0–
Billings to date		303,000		899,000		1,620,000
Collections to date		273,000		807,000		1,412,000

Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

Gross profit recognized in 2020		$enter a dollar amount enter a dollar amount
Gross profit recognized in 2021		$enter a dollar amount enter a dollar amount
Gross profit recognized in 2022		$enter a dollar amount enter a dollar amount

Prepare the journal entries to record profit or loss, if any using the percentage-of completion-method and (B) the completed- contract method