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 Ritts products. Pricing and cost information on the three of Ritts most popular products are as follows:

Item	Standalone Selling Price	Cost
Mini-trencher	$3,000	$2,000
Power fence hole auger	1,200	800
Grain/Hay dryer	14,000	11,000

(a) On January 1, 2017, Ritt sells 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. Ritts 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 Ritt on January 1, 2017.

(b) On August 10, 2017, Ritt sells 16 mini-trenchers to a farm co-op in western Minnesota. Ritt provides a 4% volume discount on the mini-trenchers if 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. Prepare the journal entry for Ritt on August 10, 2017.

(c) 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 sales value 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, 2017, and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2017, and full payment is made to Ritt. Prepare the journal entries for Ritt in 2017 related to this arrangement.

(d) On April 25, 2017, Ritt ships 100 augers to Farm Depot, a farm supply dealer in Nebraska, on consignment. By June 30, 2017, Farm Depot has sold 60 of the consigned augers at the listed price of $1,200 per unit. Farm Depot notifies Ritt of the sales, retains a 10% commission, and remits the cash due Ritt. Prepare the journal entries for Ritt and Farm Depot for the consignment.