Ivanhoe Company, a machinery dealer, leased manufacturing equipment to Mays Corporation on January 1, 2017. The lease is for a 7-year period and requires equal annual payments of $22,370 at the beginning of each year. The first payment is received on January 1, 2017. Ivanhoe had purchased the machine during 2016 for $71,000. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by Ivanhoe. Ivanhoe set the annual rental to ensure an 7% rate of return. The machine has an economic life of 8 years with no residual value and reverts to Ivanhoe at the termination of the lease.

Compute the amount of the lease receivable. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

Lease Receivable

$enter the Lease Receivable in dollars

Prepare all necessary journal entries for Ivanhoe for 2017. (Round answers to 0 decimal places e.g. 5,125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2017	enter an account title To record sales revenue on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record sales revenue on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record sales revenue on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record sales revenue on January 1 2017	enter a debit amount	enter a credit amount
	(To record sales revenue)
	enter an account title To record rental payment on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record rental payment on January 1 2017	enter a debit amount	enter a credit amount
	(To record rental payment)
Dec. 31, 2017	enter an account title for the journal entry on December 31 2017