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 catalogue and internet site. However, given some of its speciality products, select farm implement carry Ritt's 's products. Pricing and cost information on three of Ritt's most popular products are as follows stores Item Mini-trencher Power fence hole auger Grain/hay dryer Standalone selling Price (Cost) $3,600 ($2,000) 1,200 ($800) 14,000 ($11,000) Respond to the requirements related to the following independent revenue arrangements for Ritt Ranch and Farm a. On January 1,2019Ritt sells 40 augers to Mills Farm & Fleet for $48,000. Mills signs a 6-month note at an annual interest rate of 12. 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 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Ritt's costs to recover the products will be immaterial and the returned augers are expected to be resold at a profit Required: Prepare the jpurnal entry for Ritt on January 1,2019 (3marks) b. On August 10,2019Ritt sells 16 mini trenchers to a farm co-op in western Minnesota. Ritt provides a 4% volume discount on the mini trenchers in the co-op has a 15% increase in purchases from Ritt compared to the prior year. Given the slowdown in the farm economy, sales to the co-op have been flat, and it is highly uncertain that the benchmark will be met. Required: Prepare the journal entry for Ritt on August 10,2019. (4marks) C. a Ritt sells three grain hay dryers to a local farmer at a total contract price of $45,200. In addition to the dryers Ritt provides installation which has a standalone selling price of $1,000 per unit installed. The contract payment also includes a $1,200 maintenance plan for the dryers for 3 years after installation. Ritt signs the contract on June 20, 2019 and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1 2019 and full payment is made to Ritt. Required: Prepare the journal entries for Ritt in 2019 related to this arrangement. (8 marks) a