Estates Company sells and installs storm doors for a wide variety of residential customers. 

On a stand-alone basis, a door sells for $460 and Estates Company charges $90 to install a storm door.

Each door has a cost of $260 to Estates Company.

Estates Company provides a promotional offer whereby customers can acquire a storm door and have it installed for an all-inclusive price of $510. The following occurs with respect to this promotional offer:

1. On July 15, 2021, 5 customers sign contracts to purchase a storm door and installation service at the all-inclusive price. Each customer provides a down payment of 40% of the contract price on this date. 
2. On July 24, 2021, Estates Company delivers a storm door to each customer. Estates Company installs each door on August 3, 2021.
3. On August 12, 2021, each customer pays the balance owing on the contract.

Required:

Prepare any journal entries required for Estates Company for the transactions pertaining to the storm door sale and installation contracts.

Answer rating: 100% (QA)

To record the transactions pertaining to the storm door sale and installation contracts Estates Comp... View the full answer