Q4. No paper answers please, they are hard for me to understand. Thank you!

Headland 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 Headland's products. Pricing and cost information on three of Headland's most popular products are as follows. Respond to the requirements related to the following independent revenue arrangements for Headland Ranch \& Farm. (a) On January 1, 2020, Headland sells 30 augers to Mills Farm \& Fleet for $36,000. Mills signs a 6-month note at an annual interest rate of 12%. Headland allows Mills to return any auger that it cannot use within 50 days and receive a full refund. Based on prior experience, Headland estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Headland'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 Headland 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 0 for the amounts.) On August 10, 2020, Headland sells 16 mini-trenchers to a farm co-op in western Minnesota on account. Headland provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Headland compared to the prior year. Given the slowdown in the farm economy, sales to the co-op have been flat, and it is highly unlikely that the benchmark will be met. Prepare the journal entry for Headland on August 10, 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 0 for the amounts.) Headland sells three grain/hay dryers to a local farmer at a total contract price of $40,800. In addition to the dryers, Headland provides installation, which has a standalone selling price of $900 per unit installed. The contract payment also includes a \$1,200 maintenance plan for the dryers for 3 years after installation. Headland signs the contract on June 20,2020 , and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2020, and full payment is made to Headland. Prepare the journal entries for Headland in 2020 related to this arrangement. (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 an On April 25, 2020, Headland ships 100 augers to Farm Depot, a farm supply dealer in Nebraska, on consignment. By June 30,2020 , Farm Depot has sold 50 of the consigned augers at the listed price of $1,200 per unit. Farm Depot notifies Headland of the sales, retains a 10% commission, and remits the cash due Headland. Prepare the journal entries for Headland and Farm Depot for the consignment arrangement. (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.) Headland 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 Headland's products. Pricing and cost information on three of Headland's most popular products are as follows. Respond to the requirements related to the following independent revenue arrangements for Headland Ranch \& Farm. (a) On January 1, 2020, Headland sells 30 augers to Mills Farm \& Fleet for $36,000. Mills signs a 6-month note at an annual interest rate of 12%. Headland allows Mills to return any auger that it cannot use within 50 days and receive a full refund. Based on prior experience, Headland estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Headland'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 Headland 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 0 for the amounts.) On August 10, 2020, Headland sells 16 mini-trenchers to a farm co-op in western Minnesota on account. Headland provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Headland compared to the prior year. Given the slowdown in the farm economy, sales to the co-op have been flat, and it is highly unlikely that the benchmark will be met. Prepare the journal entry for Headland on August 10, 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 0 for the amounts.) Headland sells three grain/hay dryers to a local farmer at a total contract price of $40,800. In addition to the dryers, Headland provides installation, which has a standalone selling price of $900 per unit installed. The contract payment also includes a \$1,200 maintenance plan for the dryers for 3 years after installation. Headland signs the contract on June 20,2020 , and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2020, and full payment is made to Headland. Prepare the journal entries for Headland in 2020 related to this arrangement. (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 an On April 25, 2020, Headland ships 100 augers to Farm Depot, a farm supply dealer in Nebraska, on consignment. By June 30,2020 , Farm Depot has sold 50 of the consigned augers at the listed price of $1,200 per unit. Farm Depot notifies Headland of the sales, retains a 10% commission, and remits the cash due Headland. Prepare the journal entries for Headland and Farm Depot for the consignment arrangement. (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.)