one question

Problem 1 (8 points) Make-It-Warm Company (MIW) Company sells and installs gas heaters units for commercial properties. Each gas heater unit has a standalone selling price of $4,000 per unit. MIW has a standalone installation price of $1,000 per unit. MIW offers a special where it will sell and install each gas heater unit at a price of $3,750 per unit. One commercial customer enters into a written contract with MIW to purchase TWO gas heater units including installation. MIW delivers the gas units on 12-30-20. MIW installs all of the units on 1-31-2021. The cost of each gas heater unit to MIW is $2,000 per unit. REQUIRED: 1. Use the Five Step Revenue Model to determine the amount of revenue MIW will recognize upon completion of its performance obligations. Show all work on page 2. 2. Make ALL of the required journal entries on 12-30-20 AND 1-31-21 assuming the customer makes a cash down payment of $6,500 on 12-30-20 and pays the remaining balance in cash on 1-31-2021 after the installation takes place. Show all work on page 2. EIVESTEP REVENUE MODEL Journal entries on 12-30-20 Journal entries on 1-31-21