Problem 18-05 (Part Level Submission)

Windsor 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 Windsors products. Pricing and cost information on three of Windsors most popular products are as follows.

Item		Standalone Selling Price (Cost)
Mini-trencher		$ 3,800	($2,200	)
Power fence hole auger		1,000	(800	)
Grain/hay dryer		14,800	(10,100	)

Respond to the requirements related to the following independent revenue arrangements for Windsor Ranch & Farm.

(a)

(b)

On August 10, 2020, Windsor sells 16 mini-trenchers to a farm co-op in western Minnesota on account. Windsor provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Windsor 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 Windsor on August 10, 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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
(To record sales)
(To record cost of goods sold)