Instructions The 2017 audit of Lane Company's accounting records discloses the following information: 2016 2017 $183,400 $186,000 7,400 6,800 7,000 7.900 7.500 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, n/60) Cash collected on accounts receivable during the year (net of discounts takon) 7,200 4,700 6,000 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 sales and me net price method is used to account for sales dacourts A Allowance for Doubtful Accounts B Accounts Receivable 2 What is the 2017 ending balance in each of the accounts in Roorement and how we reported on Lanes 2017 financial statement Lane Company General Ledger ASSETS REVENUE 411 Sales Revenue 111 Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 141 Inventory 152 Prepaid Insurance 181 Equipment 198 Accumulated Depreciation EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salarles Expense 532 Bad Dobt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Reconstruct the journal entries that were made by Lane during 2017 to record changes in Allowance for Doubtful Accounts, assuming sales returns and allowances ar estimated in the period of sale and the net price method is used to account for sales discounts. Additional Information How does seading work? PAGE 9 GENERAL JOURNAL Score: 20/51 DATE ACCOUNT TITLE POST BY DET CREDIT Accounts Receivable 372.400.00 Sales Revenue 372.400.00 3 Cash 367.500.00 Accounts Receivable 367,500.00 Reconstruct the journal entries that were made by Lane during 2017 to record changes in Accounts Receivable, assuming sales returns and allowances 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 GENERAL JOURNAL Score: 31/76 DATE ACCOUNT TITLE POST. REF DET CREDIT 1 7,900.00 2 7.900.00 Allowance for Doubtful Accounts Accounts Receivable Bad Debt Expense Allowance for Doubtful Accounts 1 7.500.00 7.500.00 5.880.00 Allowance for Doubtful Accounts Accounts Receivable 5.080.00 Analysis Shaded cols have feedback What is the 2017 ending balance in each of the accounts in Requirement 1 and now will it be reported on Lars 2017 financial statements The Allowance for Doubtful Account balance of $7.000 subtracted from the Accounts Receivable balance of $176.400 X on the 2017 ending balance sheet to reflect net Accounts Receivable of $183,400 X Points