Ayayai Windows manufactures and sells custom storm windows for three-season porches. Ajayi also provides installation services for

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Ayayai Windows manufactures and sells custom storm windows for three-season porches. Ajayi also provides installation services for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Ajayi enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,400 and chooses Ayayai to do the installation.

Ayayai charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Ayayai $2,080 (which equals the standalone selling price of the windows, which have a cost of $1,050) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Ayayai completes installation on October 15, 2017, and the customer pays the balance due.

Ayayai estimates the standalone selling price of the installation based on an estimated cost of $450 plus a margin of 30% on cost.

Prepare the journal entries for Ayayai in 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answer to 0 decimal places, e.g. 5,125.)

Date	Account Titles and Explanation	Debit	Credit
July 1, 2017

Sept 1, 2017



Oct 15, 2017

Given uncertainty of finding skilled labor, Ayayai is unable to develop a reliable estimate for the standalone selling price of the installation.

Prepare the journal entries for Ayayai in 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)