Sage Hill Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Oriole Company. The term of the non-cancelable lease ls 2 years, and payments are required at the end of each year. The following information relates to this agreement 1 2 Oriole has the option to purchase the equipment for $22.500 upon termination of the lease. It is not reasonably certain that Oriole will exercise this option The equipment has a cost of $250,000 and fair value of $273,000 to Sage Hili Leasing. The useful economic life is 2 years, with a residual value of $ 22,500 Sage Hill Leasing desires to earn a return of 5% on its investment Collectibility of the payments by Sage Hill Leasing is probable. 4. Click here to view factor tables Prepare the journal entries on the books of Sage Hill Leasing to reflect the payments received under the lease and to recognize Income for the years 2020 and 2021. (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 es 5,275) Date Account Titles and Explanation Debit Credit 1/1/20 Lease Receivable 273000 Cost of Goods Sold Inventory Sales Revenue 12/31/20 V Cash Lease Receivable Interest Revenue 12/31/21 V Cash Lease Receivable Interest Revenue Assuming that Oriole exercises its option to purchase the equipment on December 31, 2021, prepare the journal entry to record the sale on Sage Hill Leasing's books. (Credit account titles ore automatically Indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit 12/31/21 Cach 22500 Receivable 22500