TOUT Maps at Government financi Public Chad Nearpod - online M Wiley PLUS Grades - 20W --Col Other bookm JS kiero Sintermediate Accounting, 12ce Volume 1 Time: 10:30 AM / Remaining 8 min PRINTER VERSION BLACK NEXT Brief Exercise 6-20 Buffalo Windows manufactures and sells custom storm windows for three-season porches Buffalo 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. Buffalo enters into the following non-cancellable contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,500 and chooses Buffalo to do the installation. Buffalo charges the same price for the windows regardless of whether it does the Installation or not. The price of the installation service is estimated to have a fair value of $621. The customer pays Buffalo $2,079 (which equals the fair value of the windows, which have a cost of $1,300) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Buffalo completes installation on October 15, 2020, and the customer pays the balance due Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Buffalo. Assume Buffalo follows FRS. (Round percentage allocations to 2 decimal places, 15.25 and final answers to 0 decimal places, e.g. 5,275.) Performance Obligation Window delivery When? How much? Installation 5 Total TOUT Maps at Government financi Public Chad Nearpod - online M Wiley PLUS Grades - 20W --Col Other bookm JS kiero Sintermediate Accounting, 12ce Volume 1 Time: 10:30 AM / Remaining 8 min PRINTER VERSION BLACK NEXT Brief Exercise 6-20 Buffalo Windows manufactures and sells custom storm windows for three-season porches Buffalo 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. Buffalo enters into the following non-cancellable contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,500 and chooses Buffalo to do the installation. Buffalo charges the same price for the windows regardless of whether it does the Installation or not. The price of the installation service is estimated to have a fair value of $621. The customer pays Buffalo $2,079 (which equals the fair value of the windows, which have a cost of $1,300) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Buffalo completes installation on October 15, 2020, and the customer pays the balance due Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Buffalo. Assume Buffalo follows FRS. (Round percentage allocations to 2 decimal places, 15.25 and final answers to 0 decimal places, e.g. 5,275.) Performance Obligation Window delivery When? How much? Installation 5 Total
