Pharoah 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 $25,349 at the beginning of each year. The first payment is received on January 1, 2017. Pharoah 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 Pharoah. Pharoah set the annual rental to ensure an 6% rate of return. The machine has an economic life of 8 years with no residual value and reverts to Pharoah 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 $ Prepare all necessary journal entries for Pharoah 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 Ofor the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 (To record sales revenue) (To record rental payment) Dec. 31, 2017