Pearl Company manufactures equipment. Pearl's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $$200,000$ to $$1,500,000$ and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment and does not require proprietary information about the equipment in order for the installed equipment to perform to specifications. Pearl has the following arrangement with Winkerbean Inc.Prepare the journal entries for Pearl for this revenue arrangement on June $1,2020$ and September $30,2020,$

assuming Pearl receives payment when installation is completed. $($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 $0$ for

the amounts.$)$

Date

Account Titles and Explanation

Debit

$($To record sales$)$

$($To record cost of goods sold$)$

$($To record service revenue$)$

$($To record payment received$)$

$$

$$

Winkerbean purchases equipment from Pearl for a price of $$980,000$ and contracts with Pearl to install the equipment. Pearl charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Pearl determines installation service is estimated to have a standalone selling price of $$48,000.$ The cost of the equipment is $$630,000.$

Winkerbean is obligated to pay Pearl the $$980,000$ upon the delivery and installation of the equipment.

Pearl delivers the equipment on June $1,2020,$ and completes the installation of the equipment on September $30,2020.$

The equipment has a useful life of $10$ years. Assume that the equipment and the installation are two distinct performance obligations which should be accounted for separately.