Sheffield Windows manufactures and sells custom storm windows for enclosed porches. Sheffield also provides installation

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Sheffield Windows Manufactures And Sells Custom Storm Windows For Enclosed Porches Sheffield Also Provides Installation 1 (63 KiB) Viewed 10 times

Sheffield Windows manufactures and sells custom storm windows for enclosed porches. Sheffield also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be provided by other vendors. Sheffield enters into the following contract on June 1, 2021, with a local homeowner. The customer purchases windows for a price of $5,140 and chooses Sheffield to do the installation. Sheffield charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of $1,160. The customer pays Sheffield $4,640 (which equals the fair value of the windows, which have a cost of $2,100) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on August 1, 2021, Sheffield completes installation on September 15, 2021, and the customer pays the balance due. (Round amounts to nearest dollar.) Prepare the journal entries for Sheffield in 2021. (Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record windows delivered) (To record cost of goods sold) Debit Cre