Question

For the three months ending July 31, 1986, there was a zero balance in Unbilled Charges...

For the three months ending July 31, 1986, there was a zero balance in Unbilled Charges on Restoration, yet there was a balance of $107,301 in Overbilled Charges on Restoration. Is there any significance to this difference?

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There is a significance as there was a zero balance in Unbilled Charges on Restoration, yet there was a balance of $107,301 in Overbilled Charges on Restoration.Both overbilling and underbilling occur primarily on projects with extended timelines.
Unbilled Charges on Restoration were charged as revenue recognized under the percentage-of-completion method in excess of amounts billed. It showing Zero balance under percentage of completion method, under-billing happens when costs exceed the billing.Overbilling estimated cash costs to complete the project exceed the amount of money remaining on the project still to be billed.
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