Under the percentage$-of-$completion method, how should the balances $of$ contract asse$\frac{t}{l}$iability $be$ disclosed $in$ the financial statements prior $to$ the completion $of$ the contract?

net, $as$ a current asset $if$ a debit balance, and a current liability $if$ a credit balance

$as$ a Deferred Expense

net, $as$ income from construction $if$ a credit balance, and loss from construction $if$ a debit balance

$as$ Accounts Receivable