About this document
Sales-Type Lease Accounting Overview by Nikki Wano is a document available to read on EtoBox.
The document discusses accounting considerations for a sales type lease from the perspective of the lessor. A sales type lease allows the lessor to recognize both a profit on the sale of the asset to the lessee as well as interest income. Key accounting entries for the lessor include recording the gross investment in the lease, net investment, unearned interest income, sales, cost of goods sold, and gross profit. The example illustrates the accounting entries for a machinery lease between a lessor company a
- Author
- Nikki Wano
- Language
- EN