A construction company's year-end work-in-progress schedule shows a project with $1,200,000 in costs incurred and estimated earnings, but only $1,000,000 has been billed to the client. How should this $200,000 difference be presented on the company's balance sheet?
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A
As a component of retained earnings
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B
As a current asset titled 'Costs and estimated earnings in excess of billings'
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C
As a current liability titled 'Billings in excess of costs and estimated earnings'
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D
As a reduction of revenue on the income statement