Bonita Windows manufactures and sells custom storm windows for three-season porches. Bonita 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. Bonita enters into the following non-cancellable contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $ 3,200 and chooses Bonita to do the installation. Bonita charges the same price for the windows regardless of whether it does the installation or not. The customer pays Bonita $ 2,640 (which equals the fair value of the windows, which have a cost of $ 1,300) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Bonita completes installation on October 15, 2020, and the customer pays the balance due. Part 1 Perform step 4 of the five-step process for revenue recognition. Prepare the journal entries for Bonita on July 1, September 1, and October 15, 2020, assuming Bonita estimates the stand-alone value of the installation based on an estimated cost of $ 550 plus a margin of 20% on cost. (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 percentage allocations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit September 1, 2020 October 15, 2020 Date Account Titles and Explanation Debit September 1, 2020 October 15, 2020 (To record sales) July 1, 2020 September 1, 2020 (To record cost of goods sold) October 15, 2020 Part 2 Prepare the journal entries for Bonita on July 1, September 1, and October 15, 2020 given the uncertainty of finding skilled labour, Bonita is unable to develop a reliable estimate for the fair value of the installation. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Cro (To record sales) (To record cost of goods sold) Bonita Windows manufactures and sells custom storm windows for three-season porches. Bonita 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. Bonita enters into the following non-cancellable contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $ 3,200 and chooses Bonita to do the installation. Bonita charges the same price for the windows regardless of whether it does the installation or not. The customer pays Bonita $ 2,640 (which equals the fair value of the windows, which have a cost of $ 1,300) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Bonita completes installation on October 15, 2020, and the customer pays the balance due. Part 1 Perform step 4 of the five-step process for revenue recognition. Prepare the journal entries for Bonita on July 1, September 1, and October 15, 2020, assuming Bonita estimates the stand-alone value of the installation based on an estimated cost of $ 550 plus a margin of 20% on cost. (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 percentage allocations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit September 1, 2020 October 15, 2020 Date Account Titles and Explanation Debit September 1, 2020 October 15, 2020 (To record sales) July 1, 2020 September 1, 2020 (To record cost of goods sold) October 15, 2020 Part 2 Prepare the journal entries for Bonita on July 1, September 1, and October 15, 2020 given the uncertainty of finding skilled labour, Bonita is unable to develop a reliable estimate for the fair value of the installation. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Cro (To record sales) (To record cost of goods sold)
