You are provided with the following transactions that took place during the year. (a) Recorded credit sales

Question:

You are provided with the following transactions that took place during the year.

(a) Recorded credit sales $2,500.(b) Collected $1,900 owed by customers.(c) Paid amount owed to suppliers $2,750.(d) Recorded sales returns of $500 and credited the customer??s account.(e) Purchased new equipment $5,000; signed a long-term note payable for the cost of the equipment.(f ) Purchased a patent and paid $65,000 cash for the asset.InstructionsFor each transaction listed above, indicate whether it will increase (I), decrease (D), or have no effect (NE) on theratios.