Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flint Windows manufactures and sells custom storm windows for three-season porches. Flint also provides installation service for the windows. The installation process does not involve

image text in transcribed
image text in transcribed
image text in transcribed
Flint Windows manufactures and sells custom storm windows for three-season porches. Flint 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. Flint enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,490 and chooses Flint to do the installation. Flint charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Flint $1,950 (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, Flint completes installation on October 15, 2017, and the customer pays the balance due. Flint 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 Flint 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. Round answer to O decimal places, e.a. 5.125.) Debit Credit Date Account Titles and Explanation Jul 1, 2017 (To record contract entered into) Sep. 1. 2012 Focus (To record sales) (To record cost of goods sold) Oct. 15, 2017 (To record payment received) Given uncertainty of finding skilled labor, Flint is unable to develop a reliable estimate for the standalone selling price of the installation. Prepare the journal entries for Flint 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.) Date Account Titles and Explanation Debit Credit Sep. 1, 2017 (To record sales) (To record cost of goods sold) Oct. 15, 2017 111111 (To record payment received)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Identify how culture affects appropriate leadership behavior

Answered: 1 week ago