[bekanmom]

Refer to the following data for Andrews Construction Company:
The company is building a large complex at a price of $10,000,000. This three-year project is estimated to cost a total of $8,000,000. Actual yearly data are as follows:

Year 1 Year 2 Year 3
Costs incurred $2,000,000 $3,000,000 $2,500,000
Estimated completion costs $6,000,000 $3,000,000 $0
Billings $1,500,000 $3,500,000 $5,000,000
Cash Collected $1,000,000 $3,000,000 $6,000,000


Which one of the following entries would be made in Year 1 to record the income recognized using the percentage-of-completion method of revenue recognition?