Swifty Windows manufactures and sells custom storm windows for three-season porches. Swifty 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. Swifty enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,280 and chooses Swifty to do the installation. Swifty charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Swifty $1,980 (which equals the standalone selling price of the windows, which have a cost of $1,150) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Swifty completes installation on October 15, 2020, and the customer pays the balance due

Swifty estimates the standalone selling price of the installation based on an estimated cost of $410 plus a margin of 20% on cost. a. Prepare the journal entries for Swifty in 2020.

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