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3. CONTRACT ACCOUNTING, ACCOUNTS RECEIVABLE, AND DEFERRED REVENUE
 12 Months Ended
Dec. 31, 2014
Receivables [Abstract]  
3. CONTRACT ACCOUNTING ACCOUNTS RECEIVABLE, AND DEFERRED REVENUE

Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts

 

Costs and estimated earnings in excess of billings on uncompleted contracts represents costs and estimated earnings in excess of billings and/or cash received on uncompleted contracts accounted for under the percentage of completion contract method (See Note 1).

 

At December 31, 2014, costs and estimated earnings in excess of billings on uncompleted contracts consisted of the following for contracts accounted for using the percentage of completion method of accounting:

 

Costs and estimated earnings recognized  $882,716 
Less: Billings or cash received   (790,050)
Costs and estimated earnings in excess of billings on uncompleted contracts  $92,666 

 

There were no costs and estimated earnings in excess of billings on uncompleted contracts as of December 31, 2013.

 

Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts

 

Billings in excess of costs and estimated earnings on uncompleted contracts represents billings and/or cash received that exceed accumulated revenues recognized on uncompleted contracts accounted for under the percentage of completion contract method (See Note 1).

 

At December 31, 2014, billings in excess of costs and estimated earnings on uncompleted contracts consisted of the following for contracts accounted for using the percentage of completion method of accounting:

 

Billings and/or cash receipts on uncompleted contract  $15,000 
Less: Revenues recognized   (9,386)
Billings in excess of costs and estimated earnings on uncompleted contracts  $5,614 

 

At December 31, 2013, billings in excess of costs and estimated earnings on uncompleted contracts consisted of the following for contracts accounted for using the percentage of completion method of accounting:

 

Billings and/or cash receipts on uncompleted contract  $166,334 
Less: Revenues recognized   (3,205)
Billings in excess of costs and estimated earnings on uncompleted contracts  $163,129 

 

Accounts Receivable

 

The Company records accounts receivable related to its construction contracts and its design services based on billings or on amounts due under the contractual terms. The allowance for doubtful accounts is based upon the Company’s policy. Accounts receivable throughout the year may decrease based on payments received, credits for change orders, or back charges incurred.

 

At December 31, 2014 and 2013, accounts receivable were as follows:

 

   December 31, 2014   December 31, 2013 
Accounts receivable  $114,917   $191,159 
Less: Allowance for doubtful accounts   (11,700)   (11,700)
Accounts receivable, Net  $103,217   $179,459 

 

Bad debt expense for 2014 and 2013 was $0 and $11,700, respectively.

 

Deferred Revenue

 

Deferred revenue is deposits from customers for product sales for which the purchased product has yet to be delivered (see Note 1). Deferred revenue was $717,291 and $0 for the periods ended December 31, 2014 and December 31, 2013, respectively.