A Hialeah progress invoice before retainage is $364,000, and the contract retains 7.5%. What net current billing should be sent?
Correct Answer
D) $336,700.00
Net current billing equals gross progress billing less retained amount.
Why This Is the Correct Answer
Net current billing equals gross progress billing less retained amount.
Why the Other Options Are Wrong
Option A: $27,300.00
$27,300.00 is below the supported result for progress billing retainage; it likely uses the wrong base, period, or account bucket.
Option B: $364,000.00
$364,000.00 is above the supported result for progress billing retainage; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $309,400.00
$309,400.00 is below the supported result for progress billing retainage; it likely uses the wrong base, period, or account bucket.
Memory Technique
Draw Request money test: bucket before math for progress billing.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section One, Cash and Charge Sales, Accounts Receivable; use the job ledger figures in the stem and recompute the same accounting measure.
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