Learning Objective 8 1. The Partial Billings account is a a. revenue account. b. contra account to Sales Revenue. c. contra account to the inventory account Construction in Progress. d. liability account. 2. Which of the following journal entries is not made in the first period of a long-term contract if the company cannot make reasonably dependable estimates of the progress toward satisfaction of the performance obligation? a. To record construction costs. b. To record partial billings. c. To record cash collections from the customer. d. To record gross profit. 3. If at the end of the second year of a 4-year contract, a company determines total estimated costs are going to exceed the contract price, a. it immediately recognizes the total estimated loss. b. it recognizes the total estimated loss in the year of completion if it is using the point-in-time method. c. it spreads the estimated loss over the remaining two years if it is using the recognizing-revenue-over-time method. d. it treats the estimated loss