Franklin Co$.$ leased its manufactured equipment to Parker Inc. for a $4-$year term. Franklin Co$.$ reported a book value of $$55,000$ for the equipment in its inventory account. The lease commenced on January $1,2020,$ with the first annual payment of $$18,500$ due immediately. The equipment has a useful life of $4$ years, an estimated fair value of $$68,880,$ and no residual or salvage value. The implicit rate of the lease is $5\%$ and collectability of the lease payments from Parker is probable. Franklin's journal entries at the commencement of the sales$-$type lease would include.

A$.$ Credit of fair value to Sales Revenue

B$.$ A debit of net book value to Cost of Goods Sold

C$.$ A credit to Lease Receivable for the first annual payment

D$.$ A&B

E$.$ All of the above