Blossom Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $28,865 at the beginning of each year. The first payment is received on January 1, 2020. Blossom had purchased the machine during 2016 for $100,000. Collectibility of lease payments by Blossom is probable. Blossom set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Blossom at the termination of the lease. Click here to view factor tables. â Your answer is correct. Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places e. g. 5,275.) Amount of the lease receivable $ 190000 Prepare all necessary journal entries for Blossom for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e. g. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/20 Right-of-Use Asset Lease Receivable Cash (To record the lease) Lease Liability Cash (To record the first lease payment) 12/31/20 Suppose the collectibility of the lease payments was not probable for Blossom. Prepare the necessary journal entry for the company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 1/1/ 200 C e Textbook and Media List of Accounts X Your answer is incorrect. Suppose at the end of the lease term, Blossom receives the asset and determines that it actually has a fair value of $900 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Blossom at the end of the lease term. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e. g. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/20