On June 4, Seller Company signed a sales agreement with Buyer Company to deliver and install a piece of factory equipment. The total contract price is $300,000. Customers usually buy an equipment/installation package, but Seller Company does sell equipment without installation and also installs equipment sold by other companies. The selling price of the equipment without installation is $290,000. The separate price for installation of this piece of equipment is $20,000. Seller Company could pay $280,000 to another equipment company to accept the obligation to provide and deliver the equipment to Buyer. Seller could pay $17,000 to an installation company to accept the obligation of installing the equipment.
(1) Using the customer consideration model, make the journal entry necessary on the date the sales agreement is signed. Assume that Buyer Company paid all of the $300,000 in cash when the agreement was signed.
(2) Repeat (1) using the measurement model.