Provided below is a list of possible transactions a company may need to record. LIST OF POSSIBLE TRANSACTIONS THAT A COMPANY MAY RECORD (1) Purchased inventory for $70,000 on account. The company uses a perpetual inventory system. (2) Issued a $70,000 note payable in payment of the account in (1) above. (3) Borrowed $101,000 from the bank by signing a six month, $110,000 noninterest bearing (4) (5) (6) note. Recognized four months' interest expense on the note in (3) above. Recorded wages expense of $32,000. The cash paid was $22,000. The remainder was due to various amounts withheld from employee pay checks. Accrued accumulated vacation pay. (7) Recorded a contingent loss on a lawsuit that the company will probably lose. (8) Accrued warranty expense using the accrual method. (9) Paid warranty costs that were accrued in (8) above. (10) Recorded cash sales of $63,600, which includes 6% sales tax. REQUIRED: Using the attached form, analyze the direct effects of the above transactions on the financial statement categories indicated, based upon how the transaction would be recorded. Use I to indicate increase, D to indicate decrease, and NE to indicate no effect.