You are working as a summer intern for AAA Auditing. You have been asked to help resolve discrepancies noted in the audit for Dolfin Company, a retailer of specialty aquarium supplies.

As a merchandising company, Dolfin Company 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 following table.

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.

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