Recording Sales$-$Type Lease Journal Entries$$ Residual Value

Kelly Inc. leased equipment, originally reported in inventory, to General Engines Inc. for a $4-$year lease term and

recorded the lease as a sales$-$type lease. At the expiration of the lease, the equipment had a fair value equal to

the guaranteed residual value of $$15,600,$ and was returned to Kelly Inc.

Record Kelly Inc.$\text{'}$s journal entry for the return of the equipment.