Sunland Windows manufactures and sells custom storm windows for three-season porches. Sunland 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. Sunland enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,420 and chooses Sunland to do the installation. Sunland charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Sunland $1,920 (which equals the standalone selling price of the windows, which have a cost of $1,100) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Sunland completes installation on October 15, 2020, and the customer pays the balance due.

(a)

Sunland estimates the standalone selling price of the installation based on an estimated cost of $440 plus a margin of 20% on cost. Prepare the journal entries for Sunland 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 0 for the amounts. Round answer to 0 decimal places, e.g. 5,125.)

Date	Account titles and Explanation	Debit	Credit
Jul. 1,2020	No Entry for contract
Sep. 1,2020	Cash	$1,920
	Accounts receivable [2420-1920]	$500
	Unearned service revenue		$522
	Sales revenue		$1,898
	[To record sales]
	Cost of goods sold	$1,100
	Inventory		$1,100
	[To record cost of goods sold]
Oct.15, 2020	Cash	$500
	Unearned service revenue	$522
	Service revenue		$522
	Accounts receivable		$500

(B)

Given uncertainty of finding skilled labor, Sunland is unable to develop a reliable estimate for the standalone selling price of the installation. Prepare the journal entries for Sunland in 2020

Date	Account Titles and Explanation	Debit	Credit
Oct. 15, 2020Sep. 1, 2020
	(To record sales)
	(To record cost of goods sold)
Oct. 15, 2020Sep. 1, 2020
	(To record payment received)