18a-11

Geraths Windows manufactures and sells custom storm windows for three-season porches. Geraths 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. Geraths enters into the following contract on July 1, 2014, with a local homeowner. The customer purchases windows for a price of $2,400 and chooses Geraths to do the installation. Geraths 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 $600. The customer pays Geraths $2,000 (which equals the fair value of the windows, which have a cost of $1,100) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2014, Geraths completes installation on October 15, 2014, and the customer pays the balance due. Prepare the journal entries for Geraths in 2014. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
July 1, 2014	Accounts Receivable	2400
	Sales Revenue		2400
September 1, 2014	Cash	2000
	Accounts Receivable		2000
	No Entry	0
	No Entry		0
	(To record delivery and installation expenses)
	Cost of Goods Sold	1700
	Inventory		1700
	(To record cost of goods sold)
October 15, 2014	Cash
	Accounts Receivable
	No Entry	0
	No Entry		0

Sales Reve

2400

Cash

2000

Accounts R

2000

No Entry

0

No Entry

0

Cost of Go

1700

Inventory

1700

Cash

Accounts R

No Entry

0

Accounts R

No Entry

0

2400