Indicating the impact of certain transactions

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Reference no: EM131829030

Question: The president of Mossy Enterprises asks if you could indicate the impact certain transactions have on the following ratios.

1. Received $5,000 on cash sale. The cost of the goods sold was $2,600.

2. Recorded bad debt expense of $500 using allowance method.

3. Wrote off a $100 account receivable as uncollectible (Uses allowance method.)

4. Recorded $2,500 sales on account. The cost of the goods sold was $1,500

Instructions: Complete the table, indicating whether each transaction will increase (I), decrease (D), or have no effect (NE) on the specific ratios provided for Mossy Enterprises.

Reference no: EM131829030

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