Headland 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 Headland's products. Pricing and cost information on three of Headland's most popular products are as follows. Item Mini-trencher Power fence hole auger Grain/hay dryer Standalone Selling Price (Cost) $3,700 ($2,100) 1,300 (700) 13,000 (11,800) Respond to the requirements related to the following independent revenue arrangements for Headland Ranch & Farm. On January 1, 2020, Headland sells 50 augers to Mills Farm & Fleet for $65,000. Mills signs a 6-month note at an annual interest rate of 12%. Headland allows Mills to return any auger that it cannot use within 50 days and receive a full refund. Based on prior experience, Headland estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Headland'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 Headland 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 Ofor the amounts.) Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) On August 10, 2020, Headland sells 15 mini-trenchers to a farm co-op in western Minnesota on account. Headland provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Headland 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 Headland 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 for the amounts.) Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) Headland sells three grain/hay dryers to a local farmer at a total contract price of $42,000. In addition to the dryers, Headland provides installation, which has a standalo selling price of $900 per unit installed. The contract payment also includes a $1,400 maintenance plan for the dryers for 3 years after installation. Headland signs the contract on June 20, 2020, and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2020, and full payment is made to Headland. Prepare the journal entries for Headland in 2020 related to this arrangement. (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 O for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Date Jun. 20, 2020 (To record payment received) (To record sales) (To record cost of goods sold) On April 25, 2020, Headland ships 90 augers to Farm Depot, a farm supply dealer in Nebraska, on consignment. By June 30, 2020, Farm Depot has sold 50 of the consign augers at the listed price of $1,300 per unit. Farm Depot notifies Headland of the sales, retains a 10% commission, and remits the cash due Headland. Prepare the journa entries for Headland and Farm Depot for the consignment arrangement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. no entry is required, select "No entry"for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Date Entries for Headland Jun 30, 2020 (To record payment received) (To record sales) Entries for Farm Depot (To record consignment sales) (To record payment)