Corvette Company, a window and door manufacturer reported the following for the 11 months ended November 30, 2014:

Net sales.................................................$2,500,000

Cost of goods sold.......................................1,500,000

Warranty revenue............................................15,000

Service revenue.............................................100,000

Unearned revenue...........................................75,000

Additional information for the month of December is as follows:

1. The service revenue is for revenue earned on installation and the unearned revenue is for any unearned warranty revenue.

2. Provided $10,000 of warranty service to customers.

3. Window and doors sales to customers were $230,000 and the cost of the windows and doors sold was $138,000.

4. In addition, customers paid $6,000 for extended warranties and $9,500 for installation services.

5. Included in the December sales was $10,500 for windows and doors delivered to the customer by December 31, 2014, which still required installation. The customers prepaid $1,200 for installation when the windows and doors were ordered. The windows and doors will be installed during January 2015.

6. Corvette's year end is December 31 and the company prepares adjusting journal entries annually.

Instructions

Calculate the net sales, cost of goods sold, installation revenue, and warranty revenue that Corvette will report in its income statement for the year ended December 31, 2014.

Taking It Further

Assume that Corvette pays its sales staff a 5% commission on all window and door sales. The sales staff is paid their commission when the company is paid by the customer. At December 31, 2014, the company's accounts receivable for windows and doors are $190,000 and the company estimates that 2% of the accounts receivable will not be collected. Calculate the commission expense for the year ended December 31,

2014.