Equipment Lease Accounting Question
In my respiratory business, I use equipment leases to finance my larger purchases. Usually two and three year leases.
The equipment cost hits the cost of goods at it's monthly depreciation, spread over 5 years.
The lease payment can be divided into the principal and interest. How do you account for the lease payments in your bookeeping? Or do you apply that payment to your COG instead of the depreciation?
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