Prepare the journal entries for splish

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Splish Windows manufactures and sells custom storm windows for three-season porches. Splish 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. Splish enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,290 and chooses Splish to do the installation. Splish 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 $590. The customer pays Splish $2,070 (which equals the standalone selling price of the windows, which have a cost of $1,110) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Splish completes installation on October 15, 2020, and the customer pays the balance due.

Problem 1: Prepare the journal entries for Splish in 2020.

1) There are 4 entries to RECORD SALES.
2) There are 2 entries to RECORD COGS.
3) There are 4 entries to finish the journal entries.

Reference no: EM132936112

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