Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sarasota Windows manufactures and sells custom storm windows for three-season porches. Sarasota also provides installation service for the windows. The installation process does not involve
Sarasota Windows manufactures and sells custom storm windows for three-season porches. Sarasota 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. Sarasota enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,280 and chooses Sarasota to do the installation. Sarasota charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $630. The customer pays Sarasota $1,980 (which equals the standalone selling price of the windows, which have a cost of $1,140) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Sarasota completes installation on October 15, 2017, and the customer pays the balance due. Prepare the journal entries for Sarasota in 2017. (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 o for the amounts. Round answer to O decimal places, e.g. 5,125.) Debit Credit Date Jul. 1, 2017 Account Titles and Explanation No Entry No Entry (To record contract entered into) Sep. 1, 2017 TCash Accounts Receivable Unearned Service Revenue 573 Sales Revenue 1457 (To record sales) Cost of Goods Sold 1140 Inventory 1140 (To record cost of goods sold) Oct. 15, 2017 Cash JC 7 470 L 5921 Unearned Service Revenue T Service Revenue 592 Accounts Receivable 470
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started