Markley Windows manufactures and sells custom storm windows for enclosed porches. Markley 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. Markley enters into the following contract on April 1, 2018, with a local homeowner. The customer purchases windows for a price of $7,000 and chooses Markley to do the installation. Markley 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 $1,800. The customer pays Markley $6,000 (which equals the fair value of the windows, which have a cost of $3,500) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on June 1, 2018, Markley completes installation on July 15, 2018, and the customer pays the balance due.

Instructions

Prepare the journal entries for Markley in 2018. (Round amounts to nearest dollar.)