Question

Ayayai Windows manufactures and sells custom storm windows for three-season porches. Ayayai also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Ayayai enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,480 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 $2,010 (which equals the standalone selling price of the windows, which have a cost of $1,140) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Ayayai completes installation on October 15, 2020, and the customer pays the balance due.

Prepare the journal entries for Ayayai in 2020. (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
Sep. 1, 2020Oct. 15, 2020Jul. 1, 2020
	(To record contract entered into)
Oct. 15, 2020Sep. 1, 2020Jul. 1, 2020
	(To record sales)
	(To record cost of goods sold)
Sep. 1, 2020Oct. 15, 2020Jul. 1, 2020
	(To record payment received)

Answer 1

Journal Entries for ayayai in 2020
Sr. No.	Date	Account Titles & Explanation	Debit ($)	Credit ($)
1	july 1, 2020	No Entry	0
				0
		(To Record contract entered into)
2	Sept. 1,2020	Cash A/c                                                        Dr.	2,010
		To Sales revenue		2,010
		(To record sales)
3	Sept. 1,2020	Cost of goods sold                                     Dr.	1,140
		To Inventory		1,140
		( To record cost of goods sold)
4	Oct. 15, 2020	Cash   A/c                                                    Dr.	470
		To Service revenue		470
		(To record payment received for installation)