The president of Giraldi Enterprises asks if you could indicate the impact certain transactions have on the following ratios.

Accounts Average Current Receivable Collection Ratio Turnover Period Transaction (2:1) (103) (36.5 days)

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 Giraldi Enterprises.

AppendixLO1