Mulcahey Builders (MB) remodels office buildings in low-incomeurban areas that a

Mulcahey Builders (MB) remodels office buildings in low-incomeurban areas that are undergoing economic revitalization. MBtypically accepts a 25% down payment when they complete a job and anote which requires that the remainder be paid in three equalinstallments over the next three years plus interest. Because ofthe inherent uncertainty associated with receiving these paymentsMB has historically used the cost recovery method to recognizerevenue. As of January 1 2013 MBs outstanding gross installmentaccounts receivable (not net of deferred gross profit) consist ofthe following: