Green 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 catalogue and internet site. However, given some of its speciality products, select farm implement stores carry Ritts products. Pricing and cost information on three of Green Farm's most popular products are as follows:

a. On December 1, 2018, Green Farm sells 40 augers to Frills Farm & Fleet for $48,000. Frills signs a 6-month note at an annual interest rate of 12. Green Farm allows Frills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Green Farm estimates that 5% of units sold to customers like Frills will be returned (using the most likely outcome approach). Green Farm's 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 Green Farm on December 1, 2018

b) On July 10, 2018, Green Farm sells 16 mini trenchers to a farm co-op in western Minnesota. Green Farm provides a 4% volume discount on the mini trenchers in the co-op has a 15% increase in purchases from Green Farm compared to the prior year. Given the 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 Green Farm on July 10, 2018.

c) Green Farm sells three grain/hay dryers to a local farmer at a total contract price of $45,200. In addition to the dryers, Green Farm provides installation which has a standalone selling price of $1,000 per unit installed. The contract payment also includes a $1,200 maintenance plan for the dryers for 3 years after installation. Green Farm signs the contract on May 20, 2018, and receives a 20% down payment from the farmer. The dryers are delivered and installed on September 1 2018 and full payment is made to Green Farm. Prepare the journal entries for Green Farm in 2018 related to this arrangement.

Item Mini - trencher Power fence hole auger Grain/hay dryer Standalone selling Price (Cost) $3,600 ($2,000) 1,200 $800) 14,000 ($11,000)