Final answer:
The journal entry for recording cost in recognizing revenue upon contract completion using the completed contract method involves debiting the Cost of Completed Contracts account and crediting the Contract Revenue account.
Step-by-step explanation:
The journal entry for recording cost in recognizing revenue upon contract completion using the completed contract method involves debiting the Cost of Completed Contracts account and crediting the Contract Revenue account. This is because the completed contract method recognizes revenue and expenses only when the contract is completed. Here is an example:
- Debit: Cost of Completed Contracts account (to record the total cost of the completed contract)
- Credit: Contract Revenue account (to record the revenue generated from the completed contract)