Which accounts are affected, and in which direction, when a company purchases a machine for cash? O a) Equipment increases and cash decreases. Ob) Equipment and bank loan payable both increase. O c) Depreciable amount increases and cash decreases. Od) Equipment expense increases and cash decreases. O e) Equipment expense and bank loan payable both increase.Which accounts are affected, and in which direction, when a company disposes of a piece of equipment for cash, where the amount of cash received is greater than the book value of the equipment? O a) Cash and sales revenue both increase, and equipment and depreciation expense both decrease. Ob) Equipment and accumulated depreciation both decrease, cash increases, and the difference increases sales revenue. Oc) Equipment and accumulated depreciation both decrease, cash increases, and the difference increases retained earnings. Od) Equipment and accumulated depreciation both decrease, cash increases, and the difference increases gain on disposal. O e) Equipment and accumulated depreciation both decrease, cash increases, and the difference decreases depreciation expense.Which accounts are affected, and in which direction, by the following business transaction? You receive $1,500 cash from a customer. You previously sold goods on credit. (1) Sales revenue increases (2) Sales revenue decreases (3) Accounts receivable decreases (4) Cash increases (5) Sales returns and allowances decreases 6) Cash decreases (7) Accounts receivable increases (8) Sales returns and allowances increasesWhich accounts are affected, and in which direction, when a company records depreciation on its equipment? Oa) Depreciation expense and accumulated depreciation both increase. Ob) Depreciation expense and accumulated depreciation both decrease. Oc) There is no entry until the equipment is sold. Od) Equipment expense and accumulated depreciation both increase. O e) Equipment decreases and equipment expense increases.Which accounts are affected, and in which direction, when a company disposes of a piece of equipment for cash, where the amount of cash received is less than the book value of the equipment? ( a) Equipment and accumulated depreciation both decrease, cash increases, and the difference increases loss on disposal. Ob) Equipment and accumulated depreciation both decrease, cash increases, and the difference increases disposal expense. O c) Equipment and accumulated depreciation both decrease, cash increases, and the difference increases depreciation expense. O d) Equipment and accumulated depreciation both decrease, cash increases, and the difference decreases retained earnings. Oe) Cash and depreciation expense both increase, and equipment decreases.Which accounts are affected, and in which direction, by the following business transaction? For this question, assume that this is the business's first period of operation and the opening balance in the allowance for doubtful accounts is zero. You estimate that 5% of your outstanding accounts receivables will not be collected in future. (1) Bad debt expense decreases (2) Allowance for doubtful accounts increases (3) Bad debt expense increases (4) Accounts receivable increases Q5) Cash decreases 6) Accounts receivable decreases (7) Cash increases (8) Allowance for doubtful accounts decreasesWhich accounts are affected, and in which direction, by the following business transaction? For this question, ignore inventory and cost of goods sold. A customer returns goods which you previously sold to him on credit, $2,500. He has not paid for them yet. (1) Sales revenue increases Q2) Sales returns and allowances increases Q3) Sales returns and allowances decreases Q4) Sales revenue decreases (5) Accounts receivable increases (6) Cash increases (7) Cash decreases (8) Accounts receivable decreasesWhich accounts are affected, and in which direction, by the following business transaction? A customer whose account was written off two years ago sends you a cheque. (1) Bad debt expense increases (2) Allowance for doubtful accounts decreases Q3) Sales revenue decreases Q4) Cash increases 5) Accounts receivable increases 6) Accounts receivable decreases (7) Bad debt expense decreases (8) Allowance for doubtful accounts increases (9) Sales revenue increases (10) Cash decreasesWhich accounts are affected, and in which direction, by the following business transaction? You estimate that one specific customer's account will not be collected in future, and you write it off. ( 1) Cash decreases (2) Cash increases Q3) Bad debt expense decreases (4) Bad debt expense increases (5) Allowance for doubtful accounts increases 6) Accounts receivable decreases (7) Allowance for doubtful accounts decreases (8) Accounts receivable increases