Pina Ranch & Grouper 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 Pina's products. Pricing and cost information on three of Pina's most popular products are as follows. Standalone Selling Price (Cost) $ 3,700 ($2,100) Power fence hole auger 1,300 (700) Grain/hay dryer 13,000 (11,800) Respond to the requirements related to the following independent revenue arrangements for Pina Ranch & Grouper. Item Mini-trencher (a) On January 1, 2017, Pina sells 50 augers to Mills Farm & Fleet for $65,000. Mills signs a 6- month note at an annual interest rate of 12%. Pina allows Mills to return any auger that it cannot use within 50 days and receive a full refund. Based on prior experience, Pina estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Pina'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 Pina on January 1, 2017. (b) On August 10, 2017, Pina sells 15 mini-trenchers to a farm co-op in western Minnesota. Pina provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Pina 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 Pina on August 10, 2017. (c) Pina sells three grain/hay dryers to a local farmer at a total contract price of $42,000. In addition to the dryers, Pina provides installation, which has a standalone selling price of $900 per unit installed. The contract payment also includes a $1,400 maintenance plan for the dryers for 3 years after installation. Pina 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 Pina. Prepare the journal entries for Pina in 2017 related to this arrangement. (d) On April 25, 2017, Pina ships 90 augers to Grouper Depot, a farm supply dealer in Nebraska, on consignment. By June 30, 2017, Grouper Depot has sold 50 of the consigned augers at the listed price of $1,300 per unit. Grouper Depot notifies Pina of the sales, retains a 10% commission, and remits the cash due Pina. Prepare the journal entries for Pina and Grouper Depot for the consignment arrangement.