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Blossom Windows manufactures and sells custom storm windows for three-season porches. Blossom also provides installation service for the windows. The installation process does not
Blossom Windows manufactures and sells custom storm windows for three-season porches. Blossom also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Blossom enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,420 and chooses Blossom to do the installation. Blossom charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $600. The customer pays Blossom $1,960 (which equals the standalone selling price of the windows, which have a cost of $1,120) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Blossom completes installation on October 15, 2020, and the customer pays the balance due. Prepare the journal entries for Blossom in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answer to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Jul 1, 2020 No Entry No Entry (To record contract entered into) Sep. 1, 2020) : Cash Accounts Receivable Unearned Service Revenue Sales Revenue Debit 2048 372 Credit
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