On January 1, 20X1, Owner Company purchased a piece of equipment for $24,000. The equipment has an expected life of six years with zero salvage value. Owner Company immediately leased the equipment to User Company under an OPERATING LEASE agreement. The lease calls for Owner Company to receive lease payments of $6,800 per year to be received at the end of each year for four years.

Which ONE of the following should be in the journal entry necessary on Owner Company's books to record the receipt of the first lease payment?

Hint: You don't need an interest rate to answer this question.

• DEBIT Rent Revenue for $6,000
• CREDIT Rent Revenue for $6,800
• DEBIT Rent Revenue for $6,800
• CREDIT Rent Revenue for $6,000