Vaughn 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 Vaughn's products. Pricing and cost information on three of Vaughn's most popular products are as follows. Item Mini-trencher Power fence hole auger Grain/hay dryer Standalone Selling Price (Cost) $ 3,200 ($2,100 ) 1,100 (800) 14,100 (10,100 ) Respond to the requirements related to the following independent revenue arrangements for Vaughn Ranch & Farm. (a) On January 1, 2020, Vaughn sells 50 augers to Mills Farm & Fleet for $55,000. Mills signs a 6-month note at an annual interest rate of 12%. Vaughn allows Mills to return any auger that it cannot use within 50 days and receive a full refund. Based on prior experience, Vaughn estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Vaughn'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 Vaughn 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 o for the amounts.) Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold)