Quick Construction Company builds bridges and uses the percentage of completion method.

Data on its latest bridge project shows the following:

Total amount of contract awarded for building the bridge = $53,600

Estimated costs to build the bridge are $10,000

The following cost pattern was incurred in the 3 months to build the bridge (30% in month 1, 40% in month 2 and 30% in month 3). Payment is due 40 days after receiving the certification that a certain percentage has been completed by month end.

Required 1: Assuming no other transaction happened, what is the balance of Accounts Receivables at the end of the first month? $

Required 2: Assuming no other transaction happened, what is the balance of Accounts Receivables at the end of the second month? $

Required 3: Assuming no other transaction happened, what is the balance of Accounts Receivables at the end of the third month? $

Answer rating: 100% (QA)

To calculate the balances of accounts receivable for each month we need to determine the percentage ... View the full answer