Oriole Windows manufactures and sells custom storm windows for porches. Oriole 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. Oriole enters into the following non-cancellable contract on July 1, 2023, with a local homeowner. The customer purchases windows for a price of $2,500 and chooses Oriole to do the installation. Oriole charges the same price for the windows regardless of whether it does the installation or not. The price of the installation service is estimated to have a fair value of $621. The customer pays Oriole $2,079 (which equals the fair value of the windows, which have a cost of $1,300) on delivery and the remaining balance on installation of the windows. The windows are delivered on September 1, 2023, Oriole completes installation on October 15, 2023, and the customer pays the balance due. Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Oriole. Assume Oriole follows IFRS. (Round percentage allocations to 2 decimal places, 15.25% and final answers to O decimal places, e.g. 5,275.)

Oriole Windows manufactures and sells custom storm windows for porches. Oriole 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. Oriole enters into the following non-cancellable contract on July 1, 2023, with a local homeowner. The customer purchases windows for a price of $2,500 and chooses Oriole to do the installation. Oriole charges the same price for the windows regardless of whether it does the installation or not. The price of the installation service is estimated to have a fair value of $621. The customer pays Oriole $2,079 (which equals the fair value of the windows, which have a cost of $1,300) on delivery and the remaining balance on installation of the windows. The windows are delivered on September 1, 2023, Oriole completes installation on October 15, 2023, and the customer pays the balance due. Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Oriole. Assume Oriole follows IFRS. (Round percentage allocations to 2 decimal places, 15.25% and final answers to O decimal places, e.g. 5,275.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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