g An entity has two long-term construction contracts, one of which qualifies for revenue recognition while the performance obligation is being met and the other which does not. For either of these two contracts, what account would be debited when preparing the journal entry to record billings? Qualifies Does Not Qualify a. Billings Cash b. Construction Receivable Construction Receivable c. Cash Billings d. Constructions in Progress Construction in Progress

Respuesta :

Answer: The correct answer is "b. Construction Receivable".

Explanation: The "Construction Receivable" account should be debited to record the journal entry to reflect the invoices issued that have not yet been collected. It will be credited as your payment is made.