Windsor Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Wildhorse Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement:

1.		Wildhorse has the option to purchase the equipment for $20,000 upon termination of the lease. It is not reasonably certain that Wildhorse will exercise this option.
2.		The equipment has a cost of $200,000 and fair value of $235,000 to Windsor Leasing. The useful economic life is 2 years, with a residual value of $20,000.
3.		Windsor Leasing desires to earn a return of 5% on its investment.
4.		Collectibility of the payments by Windsor Leasing is probable.

Assuming that Wildhorse exercises its option to purchase the equipment on December 31, 2021, prepare the journal entry to record the sale on Windsor Leasings books. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date Account Titles and Explanation Debit Credit Date Account Titles and Explanation Debit Credit 12/31/21