Problem 18-5 Ritt 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 Rit's products. Pricing and cost information on three of Ritt's most popular products are as follows. Standalone Selling Price (Cost) Item Power fence hole auger Grain/hay dryer 3,600 ($2,000) 1,200 00) 14,000 (11,000) Respond to the requirements related to the folowing independent revenue arrangements for Ritt Ranch & Farm. Your answer is partially correct. Try again. On January 1, 2017, Ritt sells 40 augers to Mills Farm & Fleet for $48,000. Mills signs a 6-month note at an annual interest rate on 2%, Ritt allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Ritt estimates that S% of units sold to customers lice Mills will be returned using the most likely outcome approach). Ritt conts orocover the products will be immaterial, and the returned augers are expected to be resold at a profit. Prepare the journal entry for Ritt 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 0 for the amounts.) Account Titles and Explanation Debit Credit Accounts Receivable Sales Revenue 48000 (To record sales) 2400 Interest Expense