Pina 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 Pinas products. Pricing and cost information on three of Pinas most popular products are as follows.

Item		Standalone Selling Price (Cost)
Mini-trencher		$ 3,600	($2,100	)
Power fence hole auger		1,200	(800	)
Grain/hay dryer		13,200	(10,500	)

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

(a) On January 1, 2020, Pina sells 40 augers to Mills Farm & Fleet for $48,000. Mills signs a 6-month note at an annual interest rate of 12%. Pina allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Pina estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Pinas 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 Pina on January 1, 2020.