The 2017 audit of Lane Company's accounting records discloses the following information: 2016 2017 $186.000 $183,400 7,400 7,000 6,800 7,900 7,200 Accounts receivable (ending) Allowance for doubtful accounts (ending) Accounts receivable written off during the year Estimated bad debts for the year Actual gross sales return and allowances for the year Sales discounts not taken at end of year Credit sales during the year (terms, 2/10, 1/60) Cash collected on accounts receivable during the year (net of discounts taken) 7,500 6,000 4,700 0 400 375,000 380,000 352,000 367,500 Required: 1. Next Level Reconstruct the journal entries that were made by Lane during 2017 to record changes in the following accounts assuming sales returns and allowances are estimated in the period of sale and the net price method is used to account for sales discounts, A. Allowance for Doubtful Accounts B. Accounts Receivable 2. What is the 2017 ending balance in each of the accounts in Requirement and now will be reported on Lane's 2017 financial statements? Lane Company General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 122 Allowance for Doubtful Accounts EXPENSES 141 Inventory 500 Cost of Goods Sold 152 Prepaid Insurance 511 Insurance Expense 181 Equipment 512 Utilities Expense 198 Accumulated Depreciation 521 Salaries Expense 532 Bad Debt Expense LIABILITIES 540 Interest Expense 211 Accounts Payable 541 Depreciation Expense 231 Salaries Payable 559 Miscellaneous Expenses 250 Unearned Revenue 910 Income Tax Expense 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings General Journal Reconstruct the journal entries that were made by Lane during 2017 to record changes in Allowance for Doubtful Accounts, assuming sales returns and alowances are estimated in the period of sale and the net price method is used to account for sales discounts. Additional information How does.grading work? PAGE Score: 20/51 GENERAL JOURNAL DEBT CREDIT POST REF DATE ACCOUNT TITLE 372.400.00 1 Accounts Receivable 372.400.00 2 Sales Revenue 367,500.00 3 Cash 367.500.00 4 Accounts Receivable Ponts 3927.10 Reconstruct the journal entries that were made by Lane during 2017 to record changes in Accounts Receivable, assuming sales returns and allowances are estimate in the period of sale and the net price method is used to account for sales discounts. Additional Information How does grading work? PAGE 9 GENERAL JOURNAL Score: 31/76 POST. REF DEBIT DATE CREOST 7.900.00 1 ACCOUNT TITLE Allowance for Doubtful Accounts Accounts Receivable Bad Debt Expense 7,900.00 2 2.500.00 5 7.500.00 Allowance for Doubtful Accounts 5,096.00 5 5.096.00 Allowance for Doubtful Accounts Accounts Receivable Points 6 12/15 Analysis Shaded cells have feedback What is the 2017 ending balance in each of the accounts in Requirement, and how will be reported on Lane's 2017 francial statements? The Allowance for Doubtful Accounts balance of $7.000 V is subtracted from the Accounts Receivable batance of 53.916 X on the 2017 ending balance sheet to reflect net Accounts Receivable of 5177,520 Points 1/3
