(The effect of transactions on ratios, LO 1, 3, 5) Complete the following table by indicating whether each transaction results in an increase, a decrease, or has no effect on the financial ratios identified in the table. Assume that the current and quick ratios are greater than 1.0 before each of the items is considered.

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Transaction 1. Collection of accounts receivable 2. Recording the bad debt expense 3. Writing off an uncollectable account 4. Credit sale 5. Cash sale 6. Purchase of inventory on credit 7. A new bank loan 8. Reclassification of a long-term receivable as current (because it will come due within 12 months) Current Quick ratio Accounts receivable ratio turnover ratio Average collection period of accounts receivable