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 $2,420 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 $1,920 (which equals the standalone selling price of the windows, which have a cost of $1,100) 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 $440 plus a margin of 20% on cost. Part B 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.

Date Account Titles and Explanation Debit Credit

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)

Oct. 15, 2017

Cash

Unearned Service Revenue

Service Revenue

Accounts Receivable

(To record payment received)