Question - Oriole Company sells goods that cost $295,000 to Cheyenne Company for $389,000 on January 2, 2017. The sales price includes an installation fee, which is valued at $55,000. The fair value of the goods is $334,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete.
1) Prepare the journal entries (if any) to record the sale on January 2, 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.)
2) Oriole prepares an income statement for the first quarter of 2017, ending on March 31, 2017 (installation was completed on June 18, 2017). How much revenue should Oriole recognize related to its sale to Cheyenne?