Thank you for your help! The journal entry part is mostly correct, just unsure about the part I circled.

Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $96,000. Manufacturers Southern's fiscal year ends December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate 2 years (8 quarterly periods) $16,500 at the beginning of each period 2 years $125,370 Required: 1. Show how International Machines determined the $16,500 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021. Required 1 Required 2 Show how International Machines determined the $16,500 quarterly lease payments. (Round your intermediate and final answers to the nearest whole dollar. Round your percentage answer to 1 decimal place.) PV factors based on Table or Calculator function: PV of Lease n = II Lease Payment Required 1 Required 2 Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the secon payment on April 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first aco Round your intermediate and final answers to the nearest whole dollar.) View transaction list View journal entry worksheet No General Journal Credit 1 Date January 01, 2021 Lease receivable Cost of goods sold Debit 125,370 96,000 2 16,500 January 01, 2021 Cash Lease receivable 16,500 3 April 01, 2021 16,500 Cash Sales revenue Lease receivable 1,633 14,867