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Ivanhoe Windows manufactures and sells custom storm windows for enclosed porches. Ivanhoe also provides installation service for the windows. The installation process does not
Ivanhoe Windows manufactures and sells custom storm windows for enclosed porches. Ivanhoe 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. Ivanhoe enters into the following contract on June 1, 2026, with a local homeowner. The customer purchases windows for a price of $4,600 and chooses Ivanhoe to do the installation. Ivanhoe 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 $900. The customer pays Ivanhoe $4,200 (which equals the fair value of the windows, which have a cost of $2,000) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on August 1, 2026, Ivanhoe completes installation on September 15, 2026, and the customer pays the balance due. (a). Your answer is correct. What entry, if any, will be recorded on June 1, 2026? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles No Entry No Entry Debit 0 Credit eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) Your answer is correct. How many performance obligations are there to be performed? On August 1, 2026, Ivanhoe has two performance obligations. eTextbook and Media List of Accounts Attempts: 1 of 3 used (c) Compute the allocation of the performance obligations for this transaction. (Round answers to O decimal places, e.g. 5,275.) Windows Installation Revenue recognized
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