Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Metlock Windows manufactures and sells custom storm windows for three-season porches. Metlock also provides installation service for the windows. The installation process does not involve
Metlock Windows manufactures and sells custom storm windows for three-season porches. Metlock 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. Metlock enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $ 2,360 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 $ 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, 2020, Metlock completes installation on October 15, 2020, and the customer pays the balance due. Prepare the journal entries for Metlock in 2020. (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 Ofor the amounts. Round answer to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Cre Jul. 1, 2020 No Entry 0 No Entry (To record contract entered into) Sep. 1. 2020 Cash 2360 Accounts Receivable 528 Unearned Service Revenue Sales Revenue (To record sales) Cost of Goods Sold 1100 Inventory (To record cost of goods sold) Oct. 15, 2020 Cash Unearned Service Revenue Service Revenue Accounts Receivable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started