TriState Windows manufactures and sells custom storm windows. TriState also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be provided by other vendors.

TriState enters into the following contract on June 1, 2018, with a local homeowner. The local homeowner purchases windows for a price of $3,500 and chooses TriState to do the installation. TriState charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of $900. The local homeowner pays TriState $3,000 (which equals the fair value of the windows, which have a cost of $1,700) upon delivery and the remaining balance upon installation of the windows.

The windows are delivered on August 1, 2018. TriState completes installation on September 15, 2018, and the local homeowner pays the balance due.

Required:

1. Identify the performance obligations of TriState Windows with respect to the local homeowner. Include the fair value measure of each performance obligation
2. Prepare a revenue allocation schedule for each performance obligation identified in (1) above.
3. Prepare all the journal entries for TriState in 2018. (Round amounts to nearest dollar.)