Consider the current asset accounts (Cash, Accounts Receivable, and Inventory) individually and as a group. What impact will the following transactions have on each account and current assets in total (Increase, Decrease, No Change)?
a. The purchase of a fixed asset for cash
b. The purchase of a fixed asset on credit
c. The purchase of inventory for cash
d. The purchase of inventory on credit
e. Customer payment of an account receivable
f. Writing off a customer’s bad debt (assume the allowance process is in place)
g. The sale of a fixed asset for cash
h. The sale of inventory (at a profit) for cash
i. The sale of inventory (at a loss) for cash
j. The sale of inventory (at a profit) on credit