Problem (10 points). Provided below is a list of possible transactions a company may need to record. LIST OF POSSIBLE TRANSACTIONS THAT A COMPANY MAY RECORD 1) Purchased inventory for $70,000 on account. The company uses a perpetual inventory system 2) Issued a $70,000 note payable in payment of the account in (1) above. (3) Borrowed $101,000 from the bank by signing a six month, S110,000 noninterest bearing note. 4) Recognized four months' interest expense on the note in (3) above (5) Recorded wages expense of $32,000. The cash paid was $22,000. The remainder was due to various amounts withheld from employee pay checks. 6) Accrued accumulated vacation pay 7) Recorded a contingent loss on a lawsuit that the company will probably lose. 8) Accrued warranty expense using the accrual method. 9) Paid warranty costs that were accrued in (8) above. ( 10) | Recorded cash sales of $63,600, which includes 6%sales tax. REQUIRED: Using the attached form, analyze the direct effects of the above transactions on the financial statement categories indicated, based upon how the transaction would be recorded. Use I to indicate increase, D to indicate decrease, and NE to indicate no effect