Wells corporation uses the percentage of completion method of accounting for construction
Wells corporation uses the percentage of completion method of accounting for construction costs. for construction project a, wells had previously recognized revenue of $250,000 out of a total of $800,000 for the project. During the current year, the company accumulated the following information about this project:
*construction costs incurred for the year, $92,000
*construction costs incurred to date (including this year's costs), $200,000
*estimated costs to complete, $300,000
Based on the previous information, prepare a schedule to determine the amount of loss that Wells Corporation should recognize for the current year.