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Metlock Windows manufactures and sells custom stom windows for three-season porches. Metlock also provides installatin service for the windows. The installation process does not involve
Metlock Windows manufactures and sells custom stom windows for three-season porches. Metlock also provides installatin service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Metlock enters into the following contract on July 1, 2017, with a local horcowner. Thc customer purchases windows for a price of $2,410 and chooses Metlock to do the installation. Metlock charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Metlock 2,020 (which equals the standalone selling price of the windows, which have a cost of $1.140) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on Septemher 1, 2017, Metilock completes installation on Octoher 15, 2017, and the customer pays the balance due. Your answer is partially correct. Try gain. Metlock estimates the standalone selling price of the installation based on an estimated cost of S410 plus a margin of 20% on cost. Prepare the journal entres for Metock in 2017 Credit account tites are automatically indented when the amount is entered. Do not indent manually. If no entry ls 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 No Entry No Entry (To record contract entered irto) Sep, 1, 2017 Cash 2,020 Accounts Receivable Uncarned Service Revenue 492 Sales Revenue 1938 To record sales) Cost of Gaods Sold 1,140 1,140 (To record cost of gcods sold) Oct. 15, 2017 Cash 410 Unearned Service Revenue 492 Service Revenue 492 Accounts Receivable 410
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