What is the account should use to record direct cost incurred on account?

Metlock Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Chambers Medical Center for a period of 10 years. The normal selling price of the machine is $497,041, and its guaranteed residual value at the end of the non- cancelable lease term is estimated to be $15,900. The hospital will pay rents of $60,100 at the beginning of each year. Metlock incurred costs of $249,000 in manufacturing the machine and $13,800 in legal fees directly related to the signing of the lease. Metlock has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 5%. Click here to view factor tables. Prepare all of the lessor's journal entries for the first year. (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. Round answers to O decimal places eg. 5,275.) Debit Credit No. Account Titles and Explanation 1. Lease Receivable 497041 Cost of Goods Sold 249000 Sales Revenue 497041 Inventory 249000 (To record the lease.) Cash 13800 Lease Expense 13800 (To record direct costs incurred on account.) 2. Cash 60100 Lease Receivable 60100 (To record receipt of the first lease payment.) Lease Receivable 3. 21847 Interest Revenue 21847 (To record interest earned during the first year of the lease.)