As a merchandising company, Dolphin Corporation uses the perpetual inventory system. To prepare for this assignment, you have been asked to review your knowledge of sales and purchase transactions by completing the table below.
Consider the effect of each transaction on the three accounts listed, then use checkmarks to identify which accounts are debited or credited. If none of these accounts is affected by the transaction, check the "No Effect" box

For each observation, use checkmarks to identify which items on the income statement are overstated or understated. If none

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Estimated Cost of Merchandise Returns Merchandise Inventory Inventory Sold No Debit Credit Debit Credit Debit Credit Effect Customer returns Purchase of merchandise for resale Payment of service fee for processing credit card sales Yearly estimate for customer returns Customer payment on account Freight paid for sales with FOB destination Freight paid for merchandise purchased FOB shipping point Cash sale of merchandise Return of merchandise purchased for resale