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Buffalo Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2017. The lease is for an 8-year period and requires equal annual payments of $39,542 at the beginning of each year. The first payment is received on January 1, 2017. Buffalo had purchased the machine during 2016 for $181,000. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by Buffalo. Buffalo set the annual rental to ensure an 12% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Buffalo at the termination of the lease. Click here to view factor tables x Your answer is incorrect. Try again. Compute the amount of the lease receivable. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g 58,971.) The amount of the lease receivable Your answer is partially correct. Try again. Prepare all necessary journal entries for Buffalo for 2017. (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 0 decimal places e.g. 58,971.) Date Account Titles and Explanation Debit Credit 1/1/17 TLease Receivable Cost of Goods Sold Prepare all necessary journal entries for Buffalo for 2017. (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 0 decimal places e.g. 58,971.) Date Account Titles and Explanation Debit Credit 1/1/17 Lease Receivable Cost of Goods Sold Sales Revenue Inventory (To record the lease.) Cash Lease Receivable (To record the first lease payment.) 12/31/17 Tinterest Receivable Interest Revenue

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