Crane Windows manufactures and sells custom storm windows for three-season porches. Crane also provides installation service forthe windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors.Crane enters into the following contract on July 1, 2025, with a local homeowner. The customer purchases windows for a price of$2,670 and chooses Crane to do the installation. Crane charges the same price for the windows irrespective of whether it does theinstallation or not. The customer pays Crane $2,016 (which equals the standalone selling price of the windows, which have a cost of$1,250) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2025,Crane completes installation on October 15, 2025, and the customer pays the balance due.(a)Your answer is partially correct.Crane estimates the standalone selling price of the installation based on an estimated cost of $720 plus a margin of 20% on cost.Prepare the journal entries for Crane in 2025. (Credit account titles are automatically indented when the amount is entered. Do notindent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answer to O decimalplaces, e.g. 5,125. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not roundintermediate calculations.)

Journal entry is a set of economic events which can be measured in monetary terms. These are…

Answered: Crane estimates the standalone selling…

Crane estimates the standalone selling price of the installation based on an estimated cost of $720 plus a margin of 20% on cost.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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