Question
Cameron Windows manufactures and sells custom storm windows for enclosed porches. Cameron also provides installation service for the windows. The installation process does not involve
Cameron Windows manufactures and sells custom storm windows for enclosed porches. Cameron also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be provided by other vendors. Cameron enters into the following contract on June 1, 2021, with a local homeowner. The customer purchases windows for a price of $10,200 and chooses Cameron to do the installation. Cameron charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of $4,200. The customer pays Cameron $7,000 (which equals the fair value of the windows, which have a cost of $5,750) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on August 1, 2021, Cameron completes installation on September 15, 2021, and the customer pays the balance due. Prepare the journal entries for Cameron in 2021. (Round amounts to nearest dollar.)
Hint: you should have multiple journal entries and potentially multiple performance obligations.
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