Reference no: EM133039481

Question - On August 10, 2020, Ritt sells 16 mini-trenchers to a farm co-op in western Canada. Ritt provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Ritt 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 entry for Ritt on August 10, 2020.

Ritt sells three grain/hay dryers to a local farmer at a total contract price of $45,200. In addition to the dryers, Ritt provides installation, which has a stand-alone sales value of $1,000 per unit installed. The contract payment also includes a $1,200 maintenance plan for the dryers for three years after installation. Ritt 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 Ritt. Round percentage allocations to two decimal places and final amounts to the nearest dollar. Prepare the journal entries for Ritt on June 20, 2020  and October 1, 2020 related to this arrangement.