Indicate the effects of the following errors on each of the listed in the column headings Use the following symbols : O = overstated, U understated , and NE = no effectAssume that the company does not use the direct write -off method for uncollectible accounts.

Transaction	Gross Profit	Current Ratio	Receivables Income	Net Income	Retained Earnings	Working Capital
a . Recorded uncollectible accounts expense by debiting Sales and crediting Accounts Receivable.
b. Wrote off an account receivable deemed uncollectible by debiting Uncollectible Accounts Expense and crediting Accounts Receivable .
c. Collected cash from credit customers settlement of outstanding accounts receivable by debiting Cash and credit- ing Sales .

• Gross Profit =Sales - Cost of Goods Sold
• Current Ratio =Current Assets / Current Liabilities
• Receivables Turnover Rate =Sales/ Average Accounts Receivable ( net)
• Working Capital = Current Assets - Current Liabilities