8 of 10 < > View Policies -/1 Current Attempt in Progress Wildhorse Corporation, which uses ASPE, manufactures replicators. On May 29, 2020, it leased to Bramble Limited a replicator that cost $267,000 to manufacture and usually sells for $421,000. The lease agreement covers the replicator's 8-year useful life and requires eight equal annual rentals of $72,394 each, beginning May 29, 2020. The equipment reverts to Wildhorse at the end of the lease, at which time it is expected that the replicator will have a residual value of $45,100, which is not guaranteed by Bramble, the lessee. An interest rate of 12% is implicit in the lease agreement. Collectibility of the rentals is reasonably assured, and there are no important uncertainties concerning costs. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Prepare Wildhorse's May 29, 2020 journal entries. (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 O for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation May Lease Receivable 29 Cost of Goods Sold Debit 402,783 267,000 Question 8 of 10 < > Date Account Titles and Explanation May 29 Lease Receivable Cost of Goods Sold Unearned Interest Income Inventory Sales Revenue May (To record inception of lease.) Cash 29 Lease Receivable (Collection of first lease payment.) eTextbook and Media Debit -/1 402,783 267,000 72,394 WN