Sheridan 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 Sheridan's products. Pricing and cost information on three of Sheridan's most popular products are as follows. Item Standalone Selling Price (Cost) $3.400 ($2,200) 1.300 (800) Mini-trencher Power fence hole auger Grain/hay dryer 14,000 (11.300) Respond to the requirements related to the following independent revenue arrangements for Sheridan Ranch & Farm. On January 1, 2025, Sheridan sells 30 augers to Sunny Farm & Fleet for $39,000. Sunny signs a 6-month note at an annual interest rate of 12%. Sheridan allows Sunny to return any auger that it cannot use within 50 days and receive a full refund. Based on prior experience, Sheridan estimates that 5% of units sold to customers like Sunny will be returned (using the most likely outcome approach). Sheridan'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 Sheridan on January 1. 2025. (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. List all debit entries before credit entries.) Date Jan. 1, 2025 Account Tikes and Explanation Debit Credit Jan. 1, 2025 (To record sales) (To record cost of goods sold) eTextbook and Media