The president of Oriole Enterprises asks if you could indicate the impact certain transactions have on the following ratios.Complete the table, indicating whether each transaction will increase, decrease, or have no effect on the specific ratios provided forOriole Enterprises.1.2.3.4.TransactionReceived $5,100 on cash sale. The cost of the goods sold was $2,652Recorded bad debt expense of $510 using allowance method.Wrote off a $102 account receivable as uncollectible (Uses allowance method.)Recorded $2,550 sales on account. The cost of the goods sold was $1,530.Current Ratio(2:1)11Accounts Receivable(10x) The president of Oriole Enterprises asks if you could indicate the impact certain transactions have on the following ratios.Complete the table, indicating whether each transaction will increase, decrease, or have no effect on the specific ratios provided forOriole Enterprises.ransactioncost of the goods sold was $2,652O using allowance method.le as uncollectible (Uses allowance method.)The cost of the goods sold was $1,530.Current Ratio(2:1)<Accounts Receivable Turnover(10x)Average Collection Period(36.5 days)

Current Ratio - Current Asset / Current LiabilityThis Ratio suggest whether the company has…

The president of Oriole Enterprises asks if you could indicate the impact certain transactions have on the following ratios. Complete the table, indicating whether each transaction will increase, decrease, or have no effect on the specific ratios provided for Oriole Enterprises. 1. 2. 3. 4. Transaction Received $5,100 on cash sale. The cost of the goods sold was $2,652 Recorded bad debt expense of $510 using allowance method. Wrote off a $102 account receivable as uncollectible (Uses allowance method.) Recorded $2,550 sales on account. The cost of the goods sold was $1,530. Current Ratio (2:1) Accounts Receivable (10x)

The president of Oriole Enterprises asks if you could indicate the impact certain transactions have on the following ratios. Complete the table, indicating whether each transaction will increase, decrease, or have no effect on the specific ratios provided for Oriole Enterprises. 1. 2. 3. 4. Transaction Received $5,100 on cash sale. The cost of the goods sold was $2,652 Recorded bad debt expense of $510 using allowance method. Wrote off a $102 account receivable as uncollectible (Uses allowance method.) Recorded $2,550 sales on account. The cost of the goods sold was $1,530. Current Ratio (2:1) Accounts Receivable (10x)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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