On february 1, 2018, arrow construction company entered into a three-year construction contract to build a bridge for a price of $8,180,000. during 2018, costs of $2,060,000 were incurred with estimated costs of $4,060,000 yet to be incurred. billings of $2,560,000 were sent, and cash collected was $2,310,000. in 2019, costs incurred were $2,560,000 with remaining costs estimated to be $3,690,000. 2019 billings were $2,810,000 and $2,535,000 cash was collected. the project was completed in 2020 after additional costs of $3,860,000 were incurred. the company's fiscal year-end is december 31. arrow recognizes revenue over time according to percentage of completion.