Exercise 18-11 Novak Windows manufactures and sells custom storm windows for three-season porches. Novak 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. Novak enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,520 and chooses Novak to do the installation. Novak charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Novak $2,040 (which equals the standalone selling price of the windows, which have a cost of $1,110) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Novak completes installation on October 15, 2017, and the customer pays the balance due. Novak estimates the standalone selling price of the installation based on an estimated cost of $430 plus a margin of 10% on cost. Prepare the journal entries for Novak in 2017. (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 0 for the amounts. Round answer to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit Jul. 1, 2017 (To record contract entered into) Sep. 1, 2017 Cash Accounts Receivable Unearned Service Revenue Sales Revenue (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) Given uncertainty of finding skilled labor, Novak is unable to develop a reliable estimate for the standalone selling price of the installation, Prepare the journal entries for Novak in 2017. (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.) Date Account Titles and Explanation Debit Credit Sep. 1, 2017 (To record sales) (To record cost of goods sold) Oct. 15, 2017 (To record payment received)