The president of Mossy Enterprises asks if you could indicate the impact certain transactions have on the
Question:
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.
Transcribed Image Text:
Accounts Average Current Receivable Collection Ratio Turnove (10x) Period (36.5 days) Transaction 1. 2. 3. 4. Received $5,000 on cash sale. The cost of the goods sold was $2,600. Recorded bad debt expense of $500 using allowance method. Wrote off a $100 account receivable as uncollectible (Uses allowance method.) Recorded $2,500 sales on account. The cost of the goods sold was $1,500.
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Related Book For
Accounting Tools For Business Decision Making
ISBN: 9780470377857
3rd Edition
Authors: Paul D. Kimmel
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