[wanmeizhuyi]

The journal entry Becker provided include：

DR: lease payments receivable $408968.76

CR: Unearned interest income $108968.76

CR: Sales revenue $300000

and

DR: COGS $275000

CR: inventory $275000

which seems totally different from what I’ve learned before or on the website：

At inception:

DR: Lease receivable $150000

DR: COGS $114654

CR: sales $144654

CR: Inventor $120000

To book lease payment each year:

DR:Cash 30804

CR:lease payment 30804

To book accrued interest income

DR: Interest Receivable 13112

CR: Interest income 13112

Why the ways of recording journal entries changed. Why not to accrue interest expense each year end, but instead record as unearned at the beginning? What the journal entries should be after the inception?

Thanks for helping me. FAR is really a pain in the neck!