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) 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.) On August 10, 2025, Ivanhoe sells 17 mini-trenchers to a farm co-op in western Minnesota on account. Ivanhoe provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Ivanhoe 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 Ivanhoe on August 10, 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.) Attempts: 2 of 3 used (c) Your answer is partially correct. Ivanhoe sells three grain/hay dryers to a local farmer at a total contract price of $42,000. In addition to the dryers, Ivanhoe provides installation, which has a standalone selling price of $1,100 per unit installed. The contract payment also includes a $1,300 maintenance plan for the dryers for 3 years after installation. Ivanhoe signs the contract on June 20,2025 , and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2025, and full payment is made to Ivanhoe. Prepare the journal entries for Ivanhoe in 2025 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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not round intermediate calculations.) Ivanhoe sells three grain/hay dryers to a local farmer at a total contract price of $42,000. In addition to the dryers, Ivanhoe provides installation, which has a standalone selling price of $1,100 per unit installed. The contract payment also includes a $1,300 maintenance plan for the dryers for 3 years after installation. Ivanhoe signs the contract on June 20,2025, and receives a 20\% down payment from the farmer. The dryers are delivered and installed on October 1, 2025, and full payment is made to Ivanhoe. Prepare the journal entries for Ivanhoe in 2025 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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not round intermediate calculations.)
