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Problem: Pharoah Construction Company began work on a $402,000 construction contract in 2020. During 2020, Pharoah incurred costs of $252,000, billed its customer for $210,500, and collected $177,000. At December 31, 2020, the estimated additional costs to complete the project total $162,405.
Required:
Question: What is Pharoah's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
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