Note 5 – Accounts Receivable and Work in Process

Accounts receivable as of December 31, 2016 and 2015, consists of the following:

Description	2016		2015
Accounts receivable on completed contracts	$	43,292	$	39,100
Costs and estimated earnings on contracts in progress		60,349		252,339
Total	$	103,641	$	291,439

Work in process consists of costs recorded and revenue earned on projects recognized on the percentage of completion method for work performed on contracts in progress at December 31, 2016 and 2015. 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. Amounts are billed 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. Work in progress as of December 31, 2016 and 2015 consists of the following as reflected in the balance sheet:

Description	2016		2015
Costs incurred on uncompleted contracts	$	166,889	$	1,519,570
Estimated earnings		39,828		290,037
		206,717		1,809,607
Less billings to date		146,368		1,557,268
Total Costs and estimated earnings on contracts in progress	$	60,349	$	252,339

Billings in excess of costs and earnings were $5,229 at December 31,2016 and $0 at December 31, 2015 and are included in accrued expenses.