Problem 18-5 (Part Level Submission) Concord Ranch & Marigold 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 Concord's products. Pricing and cost information on three of Concord's most popular products are as follows. Item Mini-trencher Power fence hole auger Grain/hay dryer Standalone Selling Price (Cost) $ 3,900 $2,000) 1,300 (900) 12,900 (11,000 ) Respond to the requirements related to the following independent revenue arrangements for Concord Ranch & Marigold. Your answer is partially correct. Try again. On January 1, 2017, Concord sells 40 augers to Mills Farm & Fleet for $52,000. Mills signs a 6-month note at an annual interest rate of 12%. Concord allows Mills to return any auger that it cannot use within 70 days and receive a full refund. Based on prior experience, Concord estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Concord'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 Concord on January 1, 2017. (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 Debit Credit Accounts Receivable 52000 Sales Revenue 52000 (To record sales) Notes Receivable 52000 XE Accounts Receivable 52000 (To record cost of goods sold)