15013262 1952 P18.5 (LO 2. 3) (Allocate Transaction Price, Returns, and Consignments) Ritt Ranch & Farm is a distributor of ranch ar farm equipment. Its products include small tools, power equipment for trench-digging and fencing, grain dryers, and bar winches Most products are sold direct via its company catalog and internet site. However, given some of its specialty products, select farm implement stores carry Ritt's products. Pricing and cost information on three of Ritt's most popular products are as follows. Standalone Item Selling Price (Cost) Mini-trencher $1.500 ($2,000) Power fence hole auger 1,200 (800) Grain/hay dryer 14.000 (1,000) Instructions Respond to the requirements related to the following independent one arrangements for Ritt Ranch & Farm. a. On January 1, 2022, Kitt sells 40 augers to Mills Farm Services for 348,000. Mills signs a 6-month note at an annual interest rate of 12% Ritt allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Ritt estimates that 5% of units sold to customers like Mills will be returned using the most likely outcome approach). Ritt's costs to recover the products will be immaterial, and the returned augers are expected to be resold at a probit, Prepare the journal entry for Ritton January 1, 2002, b. On August 10, 2022, Ritt sells 16 mini-trenchers to a farm co-op in western Minnesota. Ritt provides a volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Ritt compared to the prior year. Given a slowdown in the farm economy, sales to the co-op have been flat, and it is highly uncertain that the benchmark will be met. Prepare the journal entry for Ritton August 10, 2022 c. Ritt sells three grain/hay dryers to a local farmer at a total contract price of $45.00. In addition to the dryers, Ratt provides installation, which has a standalone selling price of $1,000 per unit installed. The contract payment also includes a $1,000 maintenance plan for the dryers for 3 years after installation. Ritt signs the contract on June 20, 2002, and receives a 20 down payment from the farmer. The dryers are delivered and installed on October 1, 2022, and full payment is made to Rin. Prepare the journal entries for Ritt in 2022 related to this arrangement d. On April 25, 2022, Ritt ships 100 augers to Farm Depot, a farm supply dealer in Nebraska, en consignment. By June 30, 2022. Farm Depot has sold 60 of the consignedsagers at the listed price of $1,200 per unit. Farm Depot notifies ist of the sains retains a 10% commission, and remits the cash due Ritt. Prepare the journal entries for Ritt and Farm Depot for the consignment arrangement. Sok Pro