Answer:
$5,499,000
$1,300,000
Explanation:
Carla Vista Construction uses the percentage-of-completion method.
The contract calls for progress billings and payments of $1,300,000 each quarter.
The total contract price is $18,330,000
At December 31, 2021, Carla Vista estimates that it is 30% complete with the construction, based on costs incurred.
<u>Using Percentage completion method implies that we account for revenue based on applying the percentage completed on the Total contract value: 30% x $18,330,000 = $5,499,000</u>
Therefore the total amount of Revenue from Long-Term Contracts to be recognized for 2021 is $5,499,000
Accounts Receivable balance will be its last quarterly payment of $1,300,000