Cullumber Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2017. The lease is for an 8-year period and requires equal annual payments of $29,169 at the beginning of each year. The first payment is received on January 1, 2017. Cullumber had purchased the machine during 2016 for $109,000. Collectibility of lease payments by Cullumber is probable. Cullumber set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Cullumber at the termination of the lease.

Suppose the collectibility of the lease payments was not probable for Cullumber. Prepare the necessary journal entry for the company in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Suppose at the end of the lease term, Cullumber receives the asset and determines that it actually has a fair value of $1,070 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Cullumber at the end of the lease term. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
1/1/17