Ivanhoe 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 Ivanhoe's products. Pricing and cost information on three of Ivanhoe's most popular products are as follows. Respond to the requirements related to the following independent revenue arrangements for Ivanhoe Ranch \& Farm. (a) Your answer is partially correct. On January 1, 2025, Ivanhoe sells 30 augers to Metlock Farm \& Fleet for $39,000. Metlock signs a 6-month note at an annual interest rate of 12%. Ivanhoe allows Metlock to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Ivanhoe estimates that 5% of units sold to customers like Metlock will be returned (using the most likely outcome approach). Ivanhoe'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 Ivanhoe on January 1, 2025. (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. List all debit entries before credit entries.) (b)