How much is credited to Revenue from Long-term Contracts during the year 2020 in the journal entries of Hardhat Construction?

The amount credited to Revenue from Long-term Contracts during the year is determined by the progress billings based on percentage of completion or milestones achieved. In the context of Hardhat Construction, if 1,125,000 represents the total revenue recognized for long-term contracts based on the work completed during the year, then this amount would be correctly credited to the revenue account. This practice adheres to the revenue recognition principle, which states that revenue should be recognized when it is earned, not necessarily when cash is received.

Additionally, considering the nature of long-term contracts, the figure likely reflects both actual work performed and consistent progress towards the completion of those contracts during 2020, which supports recognizing this revenue in the entry. The calculation approach would typically involve the contract's total revenue and the extent of completion relative to the total expected costs or billable amounts, leading to a specific revenue figure being appropriately credited.

Thus, an amount of 1,125,000 accurately represents the revenue recognized from these contracts for the accounting period in question.