Ask Question
24 August, 16:03

In late April, the Acme Construction Co. submitted a $1,200,000 progress billing on a construction contract. On May 2, the bill was approved for payment, subject to a ten percent retention, as provided by the contract. The amount that should be debited to Construction Expenditures is:

$ 0.

$ 12,000.

$1,080,000.

$1,200,000.

+4
Answers (1)
  1. 24 August, 19:20
    0
    Answer: The answer is $1,080,000

    Explanation:

    Step one:

    Since the said approved amount is

    $1,200,000 and it is subject to 10% retention

    10%of $1,200,000=

    10/100*$1,200,000=$120,000

    Step two:

    The amount that should be debited to Construction Expenditures is approved amount

    $1,200,000 minus 10% retention amount

    $1,200,000-$120,000

    $1,080,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In late April, the Acme Construction Co. submitted a $1,200,000 progress billing on a construction contract. On May 2, the bill was ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers