Answer:
On the balance sheet it will appear:
account receivable 2,000,000
unbilled contract revenue 1,800,000
Explanation:
Using percentage of completion method:
3,000,000 cost incurred + 7,000,000 cost to complete= 10,000,000 total cost
3,000,000/10,000,000 = 30%
16,000,000 revenue x 30% = 4,800,000 millions
cash 1,000,000
account receivable 2,000,000
unbilled contract receivable 1,800,000
contract revenue earned 4,800,000
