Adh uses the percentage-of-completion method to recognize, Ask an Expert

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Arizona Desert Homes (ADH) constructed a new subdivision during 2008 and 2009 under contract with Cactus Development Co. Relevant data are summarized below:

contract amount 3,000,000
cost 2008 1,200,000
2009 600,000
gross profit 2008 800,00
2009400,000
contract billing 2008 1,500,000
2009 1,500,000

ADH uses the percentage-of-completion method to recognize revenue.

What would be the journal entry made in 2008 to record revenue?

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