In questions 1, 2 and 3, indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Every box requires either an I, a D or an N Increase I Decrease D No Effect- N 1. Spaulding Co. sold merchandise to a customer for $1,000 on account during the current period. Spaulding's cost of the merchandise was $750 (purchased and paid for in a prior period). Consider the effects of all aspects of this current period sales transaction. Assets Liabilitiesqy Revenues Expenses Net Cash Income 2. A customer returned goods to Schultz Co. that had been purchased for $80 on account (and not yet paid for by the customer at the time of the return). The goods had originally cost Schultz S55. Schultz's customer service department credited the customer's account for the return. Assets Liabilities Equity Revenues Expenses Net Cash Income 3. The Martin Company recorded a cash discount on goods recently purchased on account. The good remain in inventory and in accounts pavable. Assets Liabilies Equy Reveues Exnses Net Cash Income