Discount Windows $($DW$)$ acquires $$orphaned & unused$$ windows to resell to homeowners.

DW$,$ at the option of the homeowner, can also install the windows. The installation process does

not involve changes to the windows, so this service can be provided by other vendors.

DW enters into the following contract

on June $6,2023,$ with a local

homeowner: the customer purchases

both windows and installation, from

DW$,$ for a total price of $$9,500.$ The

contract contains the following

payment terms: customer will pay

half on delivery of the Windows and

half after the installation of the

windows.

The windows are delivered on July $7,$

$2023,$ and the customer pays DW

$$4,750($the windows have a fair value

of $$4,500$ and a have a cost of $$2,300)$ upon delivery and the remaining balance upon installation

of the windows. The standalone price of the installation service is estimated to have a fair value

of $$2,300.$ Installers work at a rate of $$200$ per hour and it is estimated that this job will take $8$

hours of installation time.

DW completes installation on August $8,2023,$ and the customer pays the balance due.

Required:

Using GAAP from Topic $606$ of the Accounting Standards Codification, prepare the journal

entries for DW as discussed in the narrative above. For each journal entry show all calculations

in the explanation area below each entry. $($Round journal entry amounts to nearest dollar.$)$