by
abdul mujeeb , Contract supervision , Construction industry
Gross Amount Due from Customer is calculated as follows:
$ Contract Costs IncurredX1 Add: Profit RecognizedX1 Less: Losses Recognized(X) Less: Progress Billings(X) Gross Amount Due From CustomerX
Conversely, Gross Amount Due to Customer represents the amount of revenue earned on a contract in excess of the amount billed to the customer. It also includes the amount of contract costs incurred in excess of the amount charged to the income statement.
