Response to the following questions:
1. At which point is revenue from sales on account (credit sales) commonly recognized?
2. Elliott Company constructed a building at a cost of $50,000. A local contractor had submitted a bid to construct it for $60,000.
a. At what amount should the building be recorded?
b. Should revenue be recorded for the savings between the cost of $50,000 and the bid of $60,000?
Show all work and calculations.