Wildhorse Leasing Company leases a new machine to Blossom Corporation. The machine has a cost of $$65,000$ and fair value of $$95,500.$ Under the $3-$year, non$-$cancelable contract, Blossom will receive title to the machine at the end of the lease. The machine has a $3-$year useful life and no residual value. The lease was signed on January $1,2025.$ Wildhorse expects to earn an $8\%$ return on its investment, and this implicit rate is known by Blossom. The annual rentals are payable on each December $31,$ beginning December $31,2025.$

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Prepare the journal entry at commencement of the lease for Wildhorse. $($List all debit entries before credit entries. 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 $0$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

$\frac{1}{1}\frac{?}{25}$

Lease Receivable $$

$$

$$

Cost of Goods Sold $$

$$

Sales Revenue $$

$$

$$