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3. CONTRACT ACCOUNTING, ACCOUNTS RECEIVABLE, AND DEFERRED REVENUE
 12 Months Ended
Dec. 31, 2015
Receivables [Abstract]  
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 method (See Note 1).

 

At December 31, 2015, 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:

 

Costs and estimated earnings recognized  $511,108 
Less: Billings or cash received   (489,050)
Costs and estimated earnings in excess of billings on uncompleted contracts  $22,058 

 

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:

 

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 

 

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 method (See Note 1).

 

As of December 31, 2015, there were no billings in excess of costs and estimated earnings on uncompleted contracts accounted for using the percentage of completion method.

 

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:

 

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 

  

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 (See Note 1). Accounts receivable throughout the year may decrease based on payments received, credits for change orders, or back charges incurred.

 

At December 31, 2015 and 2014, accounts receivable were as follows:

 

   December 31, 2015   December 31, 2014 
Accounts receivable  $855,017   $114,917 
Less: Allowance for doubtful accounts   (23,400)   (11,700)
Accounts receivable, Net  $831,617   $103,217 

 

Bad debt expense for 2015 and 2014 was $11,700 and $0, respectively.

 

Deferred Revenue

 

Deferred revenues are deposits from customers for product sales which have not yet been delivered (See Note 1). Deferred revenue was $213,467 and $717,291 for the periods ended December 31, 2015 and December 31, 2014, respectively.