nment CALCUL AIOR FULL SCREEN RINTER VERSION BACK NEXT Exercise 18-11 Bridgeport
ID: 2328415 • Letter: N
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nment CALCUL AIOR FULL SCREEN RINTER VERSION BACK NEXT Exercise 18-11 Bridgeport Windows manufactures and sells custom storm windows for three-season porches. Bridgeport 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. Bridgeport enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,510 and chooses Dridgeport to do the installation. Dridgeport charges the same price tor 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 Bridgeport $1,970 (which cquals the standalone sclling price of the windows, which have a cost of S1,100) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Bridgeport completes installation on October 15, 2017, and the customer pays the balance due. Bridgeport estimates the standalone selling price of the installation based on an estimated cost of $450 plus a margin of 30% on cost. Prepare the journal entries for Dridgeport 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 cnter 0 for the amounts, Round answer to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit lul. 1, 2017 (To record contract entered into) Sep. 1, 2017 (To record sales)Explanation / Answer
Date account titles and explanation debit credit Jul. 1, 2017 No Entry 0 No Entry 0 (to record contract entered into) Sep. 1, 2017 cash 1970 Accounts receivable (2510-1970) 540 Unearned service revenue (((450+(450*30%))/((1970+(450+(450*30%))*2510 575 Sales revenue (((1970/((1970+(450+(450*30%)))*2510 1935 (to record sales) Sep 1, 2017 cost of goods sold 1100 Inventory 1100 (to record cost of goods sold) Oct. 15, 2017 cash 540 Unearned service revenue 575 Service Revenue (installation) 575 Accounts receivable 540 (to record payment received)
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