Carla Vista Corporation, which uses ASPE, manufactures replicators. On May 29, 2020, it leased to Sheridan Limited a replicator that cost $265,600 to manufacture and usually sells for $418,000. The lease agreement covers the replicator's 8-year useful life and requires eight equal annual rentals of $71,536 each, beginning May 29,2020. The equipment reverts to Carla Vista at the end of the lease, at which time it is expected that the replicator will have a residual value of $49,500, which is not guaranteed by Sheridan, 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 Carla Vista'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 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit May 29 Lease Receivable 398009 Cost of Goods Sold 418,000 Sales Revenue 265,600 Inventory 500909 Unearned Interest Income 49,500 (To record inception of lease.) May 29