Your answer is partially correct. Try again. Carla Vista Corporation, which uses ASPE, manufactures replicators. On May 29, 2017, it leased to Sunland Limited a replicator that cost $239,793 to manufacture and usually sells for $371,000. The lease agreement covers the replicator's 4-year useful life and requires four equal annual rentals of $98,055 each, beginning May 29, 2017. The equipment reverts to Carla Vista at the end of the lease, at which time it is expected that the replicator will have a residual value of $42,600, which is not guaranteed by Sunland, the lessee. An interest rate of 10% is implicit in the lease agreement. Collectibility of the rentals is reasonably assured, and there are no important uncertainties concerning costs. Click here to view the factor table. Prepare Carla Vista's May 29, 2017 journal entries. (Credit account titles are automatically indented when the 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 factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit May 29 Lease Receivable cost of Goods Sold 2 TSales Revenue Inventory 239793 (To record inception of lease & cost of goods sold) May 29 Cash 98055 | Lease Receivable (To record receipt of first lease payment)