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Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet illustration. category and on net income by entering for each account affected the account name and amount and indicating whether it is an addition (+ or a subtraction - Transaction a has been done as a the specific accounts affected by the transaction are included in that category. Net income is not affected by every transaction. In some cases only one column may be affected because all a. Accrued interest income of $30 on a note receivable. b. Determined that the Allowance for Bad Debts account balance should be decreased by $1,530 because expense during the year had been overestimated. account receivable of S750. C. Wrote off ayment of an account receivable of S310 that was paid within the 2% discount period. A Cash Discount Allowance account is maintained. ta cost of S25 each. Perpetual inventory is maintained. e. Purchased eight units of a new item of inventory on account f. Purchased 17 more units of the abave item g. Sold 20 of the items purchased (in e and f) and recognized the cost of goods sold using the LIFO cost flow assumption. Perpetual inventory is maintained. h. Paid a one-year insurance pre that applied to the next lsca t manth of the fiscal year to which it applied. ta cost of $20 each. Perpetual inventory is maintained. Reco insurance expense preceding palicy during t Stockholders' Equity Current Assets Transaction Current Liabilities Net Income Interest receivable +30 a Interest income +30 EBad debts expense +1,530 Allowance for bad debts +1.530 Allowance for cash discounts +6 C. Accounts receivable -750 Allowance for cash discounts -6 d Allowance for cash discounts +6 Accounts receivable-310 Invenlory +200 Inventory +340 Inventory -415 Accounts payable +200 Accounts payable +340 f Inventory +415 C Cash +156 Cash +156 Prepaid insurance 156