Sweet Acacia Ranch & Farm is a distributor of ranch and farm equipment. Its products include small

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Sweet Acacia Ranch & Farm is a distributor of ranch and farm equipment. Its products include small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company Internet site. However, given some of its specialty products, select farm implement stores carry Sweet Acacia’s products. Pricing and cost information on three of Sweet Acacia’s most popular products are as follows.

Item	Stand-Alone Selling Price (Cost)
Mini-trencher	$4,100	($2,320)
Power fence hole auger	1,392	($928)
Grain/hay dryer	16,380	($12,760)

Respond to the requirements related to the following independent revenue arrangements for Sweet Acacia Ranch & Farm. IFRS is a constraint.

On January 1, 2020, Sweet Acacia sells augers to Mills Farm & Fleet for $55,680. Mills signs a six-month note at an annual interest rate of 12%. Sweet Acacia allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Sweet Acacia estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Sweet Acacia’s costs to recover the products will be immaterial, and the returned augers are expected to be resold at a profit. Prepare the journal entries for Sweet Acacia 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 0 for the amounts.)

On August 10, 2020, Sweet Acacia sells 13 mini-trenchers to a farm co-op in western Canada. Sweet Acacia provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Sweet Acacia compared with 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 entries for Sweet Acacia 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.)

Sweet Acacia sells three grain/hay dryers to a local farmer at a total contract price of $53,000. In addition to the dryers, Sweet Acacia provides installation, which has a stand-alone sales value of $1,080 per unit installed. The contract payment also includes a $1,620 maintenance plan for the dryers for three years after installation. Sweet Acacia signs the contract on June 20, 2020, and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2020, and full payment is made to Sweet Acacia. Prepare the journal entries for Sweet Acacia in 2020 related to this arrangement as well as any adjusting journal entries at its December year end. (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. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)

On April 25, 2020, Sweet Acacia ships 110 augers to Farm Depot, a farm supply dealer in Alberta, on consignment. By June 30, 2020, Farm Depot has sold 60 of the consigned augers at the listed price of $1,392 per unit. Farm Depot notifies Sweet Acacia of the sales, retains a 10% commission, and remits the cash due to Sweet Acacia. Prepare the journal entries for Sweet Acacia and Farm Depot for the consignment arrangement. (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. Record journal entries in the order presented in the problem.)