Current Attempt in Progress The following facts pertain to a non-cancelable lease agreement between Ivanhoe Leasing Company and Metlock Company, a lesses Commencement date Annual lease payment due at the beginning of May 1, 2020 each year, beginning with May 1, 2020 $20,703.86 Bargain purchase option price at end of lease term $4,000 Lease term 5 years Economic life of leased equipment 10 years $65,000 Lessor's cost Fair value of asset at May 1, 2020 $92,000 8 % Lessor's implicit rate 8 % Lessee's incremental borrowing rate The collectibility of the lease payments by Ivanhoe is probable. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) -/3 E Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2020 and 2021. Metlock's annual accounting period ends on December 31. Reversing entries are used by Metlock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15. Record journal entries in the order presented in the problem.) Date 5/1/20 5/1/20 Account Titles and Explanation Lease Receivable Sales Revenue (To record the lease) Cash 12/31/20 Lease Receivable (To record the first lease payment) (To record interest expense) Debit 92000 20704 Credit 2 (To record interest expense) (To record amortization of the right-of-use asset) 4 (To recoed interest expense) 13 uestion 3 of 6 4. (To record interest expense) (To record amortization of the right-of-use asset) eTextbook and Media -/3 E