Problem 21-10 Pharoah Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment is s275,309, and its unguaranteed residual value at the end of the lease term is estimated to be $20,700. National will pay annual payments of $41,000 at the beginning of each year and all maintenance, Insurance, and taxes. Pharoah incurred costs of $168,300 In manufacturing the equipment and $3,800 in negotiating and closing the lease. Pharoah has determined that the collectibility of the lease payments is reasonably predictable, that no additional costs will be incurred, and that the implicit interest rate is 11%. Click here to view factor tables Compute the amount of each of the following items. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to o decimal places e.g. 58,971.) 301384 (1) Lease receivables (2) Sales price 295467 (3) Cost of sales 162383 Lease Amortization Schedule Annuity Due Basis, Unguaranteed Residual Value Beginning Annual Lease Payment Interest on Lease Receivable of Year Plus Residual Value Lease Receivable Recovery Lease Receivable Initial PV End of 10 $ Account Titles and Explanation Debit Credit (To record the sale and the cost of goods sold in the lease transaction.) (To record payment of the initial direct costs relating to the lease.) (To record receipt of the first lease payment.) (To record interest earned during the first year of the lease.)