Sage 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 $31,535 at the beginning of each year. The first payment is received on January 1, 2017. Sage had purchased the machine during 2016 for $69,000. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by Sage. Sage set the annual rental to ensure an 9% rate of return. The machine has an economic life of 8 years with no residual value and reverts to Sage at the termination of the lease. (a) Your answer has been saved. See score details after the due date. 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 O decimal places e.g. 58,971.) Lease Receivable $ LA 172998 (b) Prepare all necessary journal entries for Sage for 2017. (Round answers to O 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 O for the amounts.) Date Account Titles and Explanation Jan. 1, 2017 Debit Credit (To record sales revenue) Dec. 31, (To record rental payment) 2017