Tamarisk Windows manufactures and sells custom storm windows for three-season porches. Tamarisk 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. Tamarisk enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,370 and chooses Tamarisk to do the installation. Tamarisk charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Tamarisk $2,050 (which equals the standalone selling price of the windows, which have a cost of $1,140) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Tamarisk completes installation on October 15, 2020, and the customer pays the balance due.
Tamarisk Windows manufactures and sells custom storm windows for three-season porches. Tamarisk 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. Tamarisk enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,370 and chooses Tamarisk to do the installation. Tamarisk charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Tamarisk $2,050 (which equals the standalone selling price of the windows, which have a cost of $1,140) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Tamarisk completes installation on October 15, 2020, and the customer pays the balance due.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject : acounting
Transcribed Image Text:(b)
Given uncertainty of finding skilled labor, Tamarisk is unable to develop a reliable estimate for the standalone selling price of the
installation.
Prepare the journal entries for Tamarisk in 2020. (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 O for the amounts.)
Date
Account Titles and Explanation
(To record sales)
(To record cost of goods sold)
(To record payment received)
Debit
Credit
Transcribed Image Text:Tamarisk Windows manufactures and sells custom storm windows for three-season porches. Tamarisk 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. Tamarisk enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases
windows for a price of $2,370 and chooses Tamarisk to do the installation. Tamarisk charges the same price for the windows
irrespective of whether it does the installation or not. The customer pays Tamarisk $2,050 (which equals the standalone selling
price of the windows, which have a cost of $1,140) upon delivery and the remaining balance upon installation of the windows. The
windows are delivered on September 1, 2020, Tamarisk completes installation on October 15, 2020, and the customer pays the
balance due.
(a)
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