On January 1, 2017, Apple Company enters into a contract with Green Company for the sale of a digger for $475,000. The contract includes an agreement that Apple can repurchase the digger for $500,000 on or before December 31, 2017. Green pays the $475,000 on January 1. On December 31, 2017, Apple Company exercises the repurchase. Explain how Apple Company should account for the transaction and prepare all the required journal entries for 2017 on Apple Companys books.