When Progress Billings Are Sent on a Long-Term Contract, What

When progress billings are sent on a long-term contract, what type of account should be credited under the completed contract method and percentage-of-completion method? $\begin{array}{|l|l|l|}\hline &\text { Completed contract } & \text { Percentage-of-completion } \\\hline 1&\text { Contra asset } & \text { Revenue } \\\hline 2&\text { Contra asset } & \text { Contra asset } \\\hline 3&\text { Revenue } & \text { Revenue } \\\hline 4&\text { Revenue } & \text { Contra asset } \\\hline\end{array}$

A) Choice 1
B) Choice 2
C) Choice 3
D) Choice 4

Correct Answer:

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