During 2025, Crane Company started a construction job with a contract price of $1,620,000. The job was completed in 2027. The following information is available.
Costs incurred to date; 2025 - $430,000 2026 - $819,750 2027 - $1,071,000
Estimated costs to complete; 2025 - 570,000 2026 - 273,250 2027 - 0
Billings to date; 2025 - 301,000 2026 - 895,000 2027 - 1,620,000
Collections to date; 2025 - 272,000 2026 - 807,000 2027 - 1,433,000
Prepare all necessary journal entries for 2026.
Compute the amount of gross profit to be recognized each year, assuming the cost-recovery method is used