Sarasota Corporation leased equipment to Metlock, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $1,256 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $9,100, a book value of $7,100, and Sarasota expects a residual value of $6,600 at the end of the lease term. Sarasota set the lease payments with the intent of earning a 6% return, though Metlock is unaware of the rate implicit in the lease and has an incremental borrowing rate of 8%. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Prepare all necessary journal entries for Metlock in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 1/1/20 Lease Receivable Cost of Goods Sold (To record the lease) 1/1/20 Sales Revenue Inventory I DOO (To record lease payment) 12/31/20 Lease Receivable