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ABC Construction Company has been awarded a $20 million contract to build a bridge. The project will commence on 1 January 2017 and has an expected completion date of 31 December 2019. ABC Construction Company uses the percentage-of-completion method to recognise profit. The end of the financial year is 31 December. The following data relates to the project: (amounts in millions) 2017 2018 2019 Costs incurred to date 3 8 16 Estimated total costs 15 16 16 Billings 2.5 4 13.5 Receipts 2 3 15 The journal to close the accounts for the year ending 31 December 2017 will include:
A.
Debit to Billings for $20,000,000
B.
Credit to Construction in progress for $20,000,000
C.
Both A and B are correct
D.
None of the above, because the accounts are not closed until the project is complete