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Sandlewood Construction Inc. recognizes revenue over time according to percentage of completion for its long-term construction contracts. In 2018, Sandlewood began work on a $10,000,000 construction contract, which was completed in 2019.
The accounting records disclosed the following data at the end of 2018: Costs incurred $5,400,000 Estimated cost to complete 3,600,000 Progress billings 4,100,000 Cash collections 3,200,000
Problem 1: In addition to accounts receivable, what would appear in the 2018 balance sheet related to the construction accounts?
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