Oriole 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 Oriole's products. Pricing and cost information on three of Oriole's most popular products are as follows. Item Mini-trencher Power fence hole auger Grain/hay dryer Standalone Selling Price (Cost) $3,600 ($1,900) 1,400 (700) 15,300 (10,100 ) Respond to the requirements related to the following independent revenue arrangements for Oriole Ranch & Farm. (a) On January 1, 2020, Oriole sells 50 augers to Mills Farm & Fleet for $70,000. Mills signs a 6-month note at an annual interest rate of 12%. Oriole allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Oriole estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Oriole'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 Oriole 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 O for the amounts.) Account Titles and Explanation (To record sales) (To record cost of goods sold) eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 5 used Submit