Tea manufactures equipment. Tea products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment and does not require proprietary information about the equipment in order for the installed equipment to perform to specifications. Tea has the following arrangement with Winker Inc. Winker purchases equipment from Tea for a price of $950,000 and contracts with Tea to install the equipment. Tea' charges the same price for the equipment irrespective of whether it does the installation or not. Using market data. Tea' determines installation service is estimated to have a standalone selling price of $52,000. The cost of the equipment is $660.000. Winker is obligated to pay Teal the $950,000 upon the delivery and installation of the equipment. Tea' delivers the equipment on June 1, 2020, and completes the installation of the equipment on September 30.2020. The equipment has a useful life of 10 years. Assume that the equipment and the installation are two distinct performance obligations which should be accounted for separately. How should the transaction price of $950.000 be allocated among the service obligations? Equipment $ Installation $ Prepare the journal entries for Tea for this revenue arrangement on June 1, 2020 and September 30, 2020, assuming Tea receives payment when installation is completed. Date Account Titles and Explanation Debit Credi (To record sales) (To record cost of goods sold) (To record service revenue) (To record payment received)