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Question - Archer Construction Company began work on a $417,000 construction contract in 2012. Archer incurred costs of $297,000, billed its customer for $260,000, and collected $190,000. At December 31, 2012, the estimated future costs to complete the project total $171,000.
Required: Prepare Archer's journal entry to record profit or loss using:
(a) The percentage of completion method and
(b) The completed contract method (if any).
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