Question $18$

$15$ pts

Killer Whale Tanks Aquariums $($KWT$)$ is an aquarium retailer with a calendar year$-$end. KWT also offers several services for the aquariums that it sells. KWT sells aquariums on a standalone basis and also sells installation services and maintenance services for aquariums. However, KWT does not offer installation or maintenance services to customers who buy aquariums from other vendors. Pricing for its signature model of aquarium is as follows.

Aquarium only $=$$$800$

Aquarium with installation service $=$$$850$

Aquarium with maintenance services $=$$$975$

Aquarium with installation and maintenance services $=$$$1,000$

In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $$175$ and covers a period of $3$ years beginning at the installation date. Additionally, tho incremental amount charged by KWT for an installed aquarium without maintenance approximates the amount charged by independent third parties.

Assume that a customer purchases a signature model aquarium with both installation and maintenance services for $$1,000$ on March $30$th$,2023.$ The aquarium is delivered April $15$ th $2023,$ but a backlog causes delays, and the installation does not occur until May $1$st$,2023.$

Required: For KWT$,$ record any necessary journal entries related to this sale for $2023.$ Ignore COGS and Inventory amounts $($not given in the problem$)$ and focus on revenue entries.