Renee Aluminum Products plc enters into an agreement to supply Skyline Window Installers plc with standard window frames at the retail prices at the time less 40%. Renee supplies 300 windows a month at £66 each. However, the agreement provides for price increases based on Renee's increases in the cost of aluminium.
Required:
(a) In July Renee advises that the price will increase by 4%. Record revenue for the month of July
(b) If in July Renee advises Skyline Windows that the price increase of 4% applies retrospectively from 1 March, what entry would be made in Renee's accounts for revenue in July?