Pharoah 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 Pharoah's products. Pricing and cost information on three of

Pharoah's most popular products are as follows.

Respond to the requirements related to the following independent revenue arrangements for Pharoah Ranch & Farm.

$($a$)$

On January $1,2025,$ Pharoah sells $50$ augers to Coronado Farm & Fleet for $$55,000.$ Coronado signs a $6-$month note at an annual

interest rate of $12\%.$ Pharoah allows Coronado to return any auger that it cannot use within $50$ days and receive a full refund.

Based on prior experience, Pharoah estimates that $5\%$ of units sold to customers like Coronado will be returned $($using the most

likely outcome approach$).$ Pharoah'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 Pharoah 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 O for the amounts.

List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit