Bridgeport Ranch & Farm is a distributor of ranch and farm equipment. Its products range from small tools, power equipment for trench-digging and fencing, grain dryers, and barn 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 Bridgeports products. Pricing and cost information on three of Bridgeports most popular products are as follows.

Item		Standalone Selling Price (Cost)
Mini-trencher		$ 3,200	($2,100	)
Power fence hole auger		1,100	(800	)
Grain/hay dryer		14,100	(10,100	)

Respond to the requirements related to the following independent revenue arrangements for Bridgeport Ranch & Farm.

On January 1, 2020, Bridgeport sells 50 augers to Mills Farm & Fleet for $55,000. Mills signs a 6-month note at an annual interest rate of 12%. Bridgeport allows Mills to return any auger that it cannot use within 50 days and receive a full refund. Based on prior experience, Bridgeport estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Bridgeports costs to recover the products will be immaterial, and the returned augers are expected to be resold at a profit. Prepare the journal entry for Bridgeport on January 1, 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.)

Account Titles and Explanation	Debit	Credit
(To record sales)
(To record cost of goods sold)

On August 10, 2020, Bridgeport sells 17 mini-trenchers to a farm co-op in western Minnesota on account. Bridgeport provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Bridgeport compared to the prior year. Given the slowdown in the farm economy, sales to the co-op have been flat, and it is highly unlikely that the benchmark will be met. Prepare the journal entry for Bridgeport on August 10, 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.)

Account Titles and Explanation	Debit	Credit
(To record sales)
(To record cost of goods sold)