Allocate Transaction Price, Returns, and Consignments) 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 Ritt’s products. Pricing and cost information on three of Ritt’s most popular products are as follows. Item Standalone Selling Price (Cost) Mini-trencher $ 3,600 ($2,000) Power fence hole auger 1,200 (800) Grain/hay dryer 14,000 (11,000) Respond to the requirements related to the following independent revenue arrangements for Ritt Ranch & Farm. On April 25, 2022, Ritt ships 100 augers to Farm Depot, a farm supply dealer in Nebraska, on consignment. By June 30, 2022, 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 arrangement.
(Allocate Transaction Price, Returns, and Consignments) 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 Ritt’s products. Pricing and cost information on three of Ritt’s most popular products are as follows.
| Item | Standalone Selling Price (Cost) |
| Mini-trencher | $ 3,600 ($2,000) |
| Power fence hole auger | 1,200 (800) |
| Grain/hay dryer | 14,000 (11,000) |
Respond to the requirements related to the following independent revenue arrangements for Ritt Ranch & Farm.
On April 25, 2022, Ritt ships 100 augers to Farm Depot, a farm supply dealer in Nebraska, on consignment. By June 30, 2022, 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
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