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Pharoah Windows manufactures and sells custom storm windows for three - season porches. Pharoah also provides installation service for the windows. The installation process does
Pharoah Windows manufactures and sells custom storm windows for threeseason porches. Pharoah 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. Pharoah enters into the following contract on July with a local homeowner. The customer purchases windows for a price of $ and chooses Pharoah to do the installation. Pharoah charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $ The customer pays Pharoah $which equals the standalone selling price of the windows, which have a cost of $ upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September Pharoah completes installation on October and the customer pays the balance due.
Prepare the journal entries for Pharoah in 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 for the amounts. Round answer to decimal places, eg List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not round intermediate calculations.
Date
Account Titles and Explanation
No Entry
No Entry
Accounts Receivable
To record sales
To record cost of goods sold
Debit
Credit
No Entry
No Entry
Receivable
To record cost of goods sold
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