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Point 1: Headland Windows manufactures and sells custom storm windows for three-season porches. Headland 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. Headland enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of 52,440 and chooses Headland to do the installation. Headland charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Headland 52,040 (which equals the standalone selling price of the windows, which have a cost of 51,130) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Headland completes installation on October 15, 2017, and the customer pays the balance due.
Point 2: Headland estimates the standalone selling price of the installation based on an estimated cost of $420 plus a margin of 30% on cost.
Question 1: Prepare the journal entries for Headland 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 0 for the amounts. Round answer to 0 decimal places, e.g. 5,125.)
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