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Oriole Windows manufactures and sells custom storm windows for enclosed porches. Oriole 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. Oriole enters into the following contract on June with a local homeowner. The customer purchases windows for a price of $ and chooses Oriole to do the installation. Oriole 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 $ The customer pays Oriole $which equals the fair value of the windows, which have a cost of $ upon delivery and the remaining balance upon installation of the windows. The windows are delivered on August Oriole completes installation on September and the customer pays the balance due.
Prepare the journal entries for Oriole in 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. List all debit entries before credit entries.
Date
Account Titles and Explanation
Jhe
gust
ugust
To record cost of goods sold
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