Plummer Leasing Company signs a lease agreement on January 1, 2020, to lease warehouse equipment to AmZon Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. 2. AmZon has the option to purchase the equipment for $20,000 upon termination of the lease. It is not reasonably certain that AmZon will exercise this option. The equipment has a cost of $165,000 and fair value of $190,000 to Plummer Leasing. The useful economic life is 2 years, with a residual value of $20,000. 3. Plummer Leasing desires to earn a return of 6% on its investment. 4. Collectibility of the payments by Plummer Leasing is probable. Prepare the journal entries on the books of Plummer to recognize the establishment of the lease and the receipt of payments in 2020 and 2021. Do not include the return of the equipment at lease termination. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.) Date Account Titles and Explanation 1/1/20 Lease Receivable Cost of Goods Sold Sales Revenue Inventory 12/31/20 Cash Debit Credit