- Original Poster
- #1
Hello Experts !
This is a general accounting question related to construction contracts. What I analysed all myself that the following accounts are involved:
1. Construction-in-Progress (an asset account where all costs relating to contract are accumulated)
2. Retentions receivable (a.k.a Retainage - an asset account)
3. Gross amount due from customer (a.k.a costs and estimated earnings in excess of billings)
What I don't understand is gross amounts due from customers (Is it not the same as Contract Receivables). How this account is dealt with? Can an expert please post some journal entries? Because I am having confusion. I have following accounts:
Your kind help is much appreciated.
Thanks
This is a general accounting question related to construction contracts. What I analysed all myself that the following accounts are involved:
1. Construction-in-Progress (an asset account where all costs relating to contract are accumulated)
2. Retentions receivable (a.k.a Retainage - an asset account)
3. Gross amount due from customer (a.k.a costs and estimated earnings in excess of billings)
What I don't understand is gross amounts due from customers (Is it not the same as Contract Receivables). How this account is dealt with? Can an expert please post some journal entries? Because I am having confusion. I have following accounts:
Your kind help is much appreciated.
Thanks
