In January, 2018, Nevera Construction Company agreed to construct a Department Store building at price $2.400.000.

The information relating to the costs and billings for this contract is shown below.
2018 2019 2020
Costs incurred current year 560.000 640.000 370.000
Estimated cost to complete 980.000 425.000 -
Customer billings to date 12,5% 45% 100%
Collection of billings in current year 240.000 420.000 600.000
Assuming that the percentage of completion method is used.
a. Compute the percentage of completion, and the amount of gross profit to be recognized in 2018, 2019, 2020.
b. Prepare all of the entries!