Accounts Receivable

3 Months Ended

Mar. 31, 2022

Accounts Receivable And Work In Process Table [Abstract]

Accounts Receivable and Work in Process [Table Text Block]

Note 4 – Accounts Receivable

Accounts receivable as of March 31, 2022 and December 31, 2021 consists of the following:

Description	March 31, 2022		December 31, 2021
Accounts receivable on completed contracts	$	68,012	$	33,772
Costs and estimated earnings on contracts in progress		295,840		298,121
Total	$	363,852	$	331,893

Costs and Estimated Earnings on projects are recognized on the percentage of completion method for work performed on contracts in progress at March 31, 2022 and December 31, 2021.

The Company records contracts for future payments based on contractual agreements entered into at the inception of construction contracts. Amounts are payable from customers based on milestones established in each contract. Larger contracts are billed and recorded in advance and unearned profits are netted against the billed amounts such that accounts receivable reflect current amounts due from customers on completed projects and amounts earned on projects in process are reflected in the balance sheet as costs and estimated earnings in excess of billings on contracts in progress. Excess billings on contracts in process are recorded as liabilities and were $303,061 at March 31, 2022 and $268,435 at December 31, 2021.

ABCO Energy, Inc. 10-Q