Question: The president of Giraldi Enterprises asks if you could indicate

The president of Giraldi 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 GiraldiEnterprises.
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  • CreatedApril 07, 2014
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