Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. The project began i

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Assume Nortel Networks contracted to provide a customer with
Internet infrastructure for
$2,000,000. The project began in 2018 and was completed in 2019.
Data relating to the contract
are summarized below:
Year
2018
2019
Costs incurred during the year
$300,000
$1,575,000
Estimated costs to complete as of 12/31
$1,200,000
$0
Billings during the year
$380,000
$1,620,000
Cash collections during the year
$250,000
$1,750,000
(1) Assume that Arrow recognizes revenue over time according
to
percentage of completion
.
Prepare all necessary journal entries for the following events
occurred in
2018
. (8 points)
2018
To record
construction costs
To record progress
billings
To record cash
collections
To record gross profit
To close