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Pronghorn Windows manufactures and sells custom storm windows for three-season porches. Pronghorn also provides installation service for the windows. The installation process does not involve
Pronghorn Windows manufactures and sells custom storm windows for three-season porches. Pronghorn 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. Pronghorn enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,440 and chooses Pronghorn to do the installation. Pronghorn charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Pronghorn $2,040 (which equals the standalone selling price of the windows, which have a cost of $1,130) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Pronghorn completes installation on October 15, 2020, and the customer pays the balance due. Pronghorn estimates the standalone selling price of the installation based on an estimated cost of $420 plus a margin of 30% on cost. Prepare the journal entries for Pronghorn 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 o decimal places, eg. 5,125.) e Account Titles and Explanation Debit Credit No Entry 0 No Entry (To record contract entered into) 20 Cash 2040 JUNE Accounts Receivable 400 Unearned Service Revenue 795 Sales Revenue 1645
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