Brief Exercise 21-12 Your answer is partially correct. Try again. Sage Hill Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $105,300 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $43,200 payable each December 31, beginning December 31, 2019. An interest rate of 10% is implicit in the lease agreement. Collectibility of the rentals is probable. Prepare Sage Hill's December 31, 2019, journal entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places e.g. 5,275.) Click here to view factor tables. Date Account Titles and Explanation December 31, 2019 |Lease Receivable Cost of Goods Sold Debit Credit Sales Revenue Inventory (To record the lease) December 31, 2019- Cash Lease Receivable (To record receipt of lease payment) 43200 43200