Cullumber Corporation, which uses ASPE, manufactures replicators. On May 29, 2020, it leased to Waterway Limited a replicator that cost $267,200 to manufacture and usually sells for $415,000. The lease agreement covers the replicator's 7-year useful life and requires seven equal annual rentals of $69,478 each, beginning May 29, 2020. The equipment reverts to Cullumber at the end of the lease, at which time it is expected that the replicator will have a residual value of $41,700, which is not guaranteed by Waterway, the lessee. An interest rate of 8% 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 Cullumber'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 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 528046 Cost of Goods Sold Sales Revenue Inventory 267200 Unearned Interest Income (To record inception of lease.) May 29 Cash 69,478 Lease Receivable 69,478 (Collection of first lease payment.)