Question: When revenue is recognized on long - term construction projects, a journal entry is recorded to recognize revenue and cost of goods sold. The difference

When revenue is recognized on long

-

term construction projects, a journal entry is recorded to recognize revenue and cost of goods sold. The difference between revenue and cost of goods sold

(

gross profit

)

is recognized in which account?

Multiple choice question.

Billings on contracts

Construction in progress

Accounts receivable

Cash

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