Turner, inc. began work on a $7,000,000contract in 2010 to construct an office builidng. during 2010,turner, inc. incurred costs of $1,700,000, billed thier customersfor $1,200,000, and collected $960,000. at december 31, 2010, theestimated future costs to complete the project total $3,300,000.prepare turner's 2010 journal entries using thepercentage-of-completion method.
construction ,700,000
materials, cash, payables, ,700,000
accounts ,200,000
billingson construction in 1,200,000
,000
,000
construction ,000
[($1,700,000 ÷ 5,000,000) x$2,000,000]
construction ,700,000
revenuefrom long-term ,380,000
($7,000,000,000x 34%)
i just don't understand this part. where didthe 5,000,000 and the 2,000,000 and the 34% come from?