Sandhill Corporation manufactures drones. On December $31,2024,$ it leased to Althaus Company a drone that had cost $$144,000$ to manufacture. The lease agreement covers the $5-$year useful life of the drone and requires five equal annual rentals of $$48,800$ payable each December $31,$ beginning December $31,2024.$ An interest rate of $9\%$ is implicit in the lease agreement. Collectibility of the rentals is not probable.

Prepare any journal entry for Sandhill on December $31,2024.($List debit entry before credit entry. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.$)$

Account Titles and Explanation

Debit

Credit

$$

$$