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elena55 [62]
3 years ago
11

Pearl Windows manufactures and sells custom storm windows for three-season porches. Pearl 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. Pearl enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,440 and chooses Pearl to do the installation. Pearl 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 $630. The customer pays Pearl $2,040 (which equals the standalone selling price of the windows, which have a cost of $1,130) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Pearl completes installation on October 15, 2017, and the customer pays the balance due.
Given uncertainty of finding skilled labor, Pearl is unable to develop a reliable estimate for the standalone selling price of the installation.
Prepare the journal entries for Pearl in 2017.
Business
1 answer:
Vlada [557]3 years ago
8 0

Answer:

July 1, 2017

No journal entry required because no money or goods have been exchanged.

September 1, 2017

Dr Cash 2,040

Dr Accounts receivable 400

    Cr Sales revenue 1,621.37

    Cr Unearned revenue 418.63

sales revenue = [$2,040 / ($2,040 + $630)] x $2,440 = $1,621.37

unearned revenue = $2,040 - $1,621.37 = $418.63

September 1, 2017

Dr Cost of goods sold 1,130

    Cr Inventory 1,130

October 15, 2017

Dr Cash 400

Dr Unearned revenue 418.63

    Cr Accounts receivable 400

    Cr Sales revenue 418.63

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Option B Threat of substitute products

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4 0
3 years ago
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Lerok [7]

Answer:

It only serves a limited geographic market.

Explanation:

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You can find a liscenced copy from their website, which you may need to change to your locale and most computer shops will sell copies too, including online companies like Amazon, but if you're unsure then Microsoft is the best bet.
https://www.microsoft.com/en-gb/store/d/windows-10-home/d76qx4bznwk4/1NT3

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7 0
3 years ago
If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning
Ksivusya [100]

Answer:

7,000 units

Explanation:

Calculation for the number of units set forth in the production budget, representing total production for the current period

Using this formula

Number of units =Current period +Ending inventory - Beginning inventory

Where,

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Beginning inventory =400 units

Let make plug in the formula above

Number of units =7,000 units + 400 units-400 units

Number of units =7,000 units

Therefore the Number of units will be 7,000 units

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Generally convenience stores charge significantly higher prices than traditional grocery stores or supermarkets, as these wholesalers order limited stock amounts at higher per-unit prices. Convenience stores, however, compensate for this deficit by providing longer open hours, more locations and shorter cashier lines.

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