Accounting Sandhill 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 $31,903 at the beginning of each year. The first payment is received on January 1, 2020. Sandhill had purchased the machine during 2019 for $127,000. Collectibility of lease payments by Sandhill is probable. Sandhill 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 Sandhill at the termination of the lease. c) Suppose the collectibility of the lease payments was not probable for Sandhill. Prepare the necessary journal entry for the company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Accounting
Sandhill 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 $31,903 at the beginning of each year. The first payment is received on January 1, 2020. Sandhill had purchased the machine during 2019 for $127,000. Collectibility of lease payments by Sandhill is probable. Sandhill set the annual rental to ensure a 6%
c) Suppose the collectibility of the lease payments was not probable for Sandhill. Prepare the necessary
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