The president of Screven Enterprises asks if you could indicate the impact certain transactions have on the following ratios.
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Transaction |
Current |
Receivables |
Average |
|
1. Received $5,000 on cash sale. |
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2. Recorded bad debts expense of $500 |
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3. Wrote off a $100 account receivable |
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4. Recorded $2,500 sales on account. |
Instructions
Complete the table, indicating whether each transaction will increase (I), decrease (D), or have no effect (NE) on the specific ratios provided for Screven Enterprises.