Incorrect. The lease receivable is not adjusted for the unguaranteed residual value. A lessor enters a sales-type lease with an unguaranteed residual. The lessor will record A credit to sales revenue for the fair value of the asset less the gross amount of the unguaranteed residual value. A credit to sales revenue for the fair value of the asset less the present value of the unguaranteed residual value. A credit to sales revenue for the fair value of the asset. A debit to lease receivable for the gross amount less the present value of the unguaranteed residual value.