Prepare the journal entries for Windsor

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Question - Windsor Windows manufactures and sells custom storm windows for three-season porches. Windsor 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. Windsor enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,360 and chooses Windsor to do the installation. Windsor 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 $620. The customer pays Windsor $1,920 (which equals the standalone selling price of the windows, which have a cost of $1,100) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Windsor completes installation on October 15, 2020, and the customer pays the balance due.

Prepare the journal entries for Windsor in 2020.

Please provide step-by-step explanation how to compute and journalize.

Reference no: EM133056633

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