Recording Sales-Type Lease Journal Entries- No Residual Value Franklin Co. leased its manufactured equipment to Parker Inc. for a 4-year term. Franklin Co. reported a book value of $110,000 for the equipment in its inventory account. The lease commenced on January 1, 2020, with the first annual payment of $37,000 due immediately. The equipment has a useful life of 4 years, an estimated fair value of $137,760, and no residual or salvage value. The implicit rate of the lease is 5% and collectibility of the lease payments from Parker is probable. Record Franklin's journal entries at the commencement of the sales-type lease. Note: Round your answers to the nearest whole dollar. Note: List multiple debits or credits (when applicable) in alphabetical order. Date Account Name Jan. 1, 2020 Lease Receivable Cost of Goods Sold Dr. 148,000 x 110,000 x Cr. 0 Sales Revenue = x 0 148,000 x Inventory 0 110,000 x To derecognize asset and record investment in lease Jan. 1, 2020 Cash Lease Receivable To record cash lease payment 37,000 0 37,000