Pharoah Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $ 1150000 each quarter. The total contract price is $ 18168000 and Pharoah estimates total costs of $ 17350000. Pharoah estimates that the building will take 3 years to complete, and commences construction on January 2, 2021. At December 31, 2022, Pharoah Construction estimates that it is 75% complete with the building; however, the estimate of total costs to be incurred has risen to $ 17550000 due to unanticipated price increases. What is reported in the balance sheet at December 31, 2022 for Pharoah as the difference between the Construction in Process and the Billings on Construction in Process accounts, and is it a debit or a credit? Difference between the accounts Debit/Credit a. $ 3962500 Debit b. $ 4426000 Credit c. $ 4426000 Debit d. $ 4542000 Credit