For Questions 1, 2 and 3, indicate how each event affects the elements of financial statements. Use the letters shown below to record your answer in the dropdown boxes. You do not need to enter amounts. Every box requires either anl, a D. or an N. If an event is characterized by an Increase and a Decrease, present the NET impact as your response. Increase = 1 Decrease =D No Effect - N 1. Winston Co. sold merchandise to a customer for $3,500 on account during the current period. Winston's cost of the merchandise, which had been purchased and paid for in a prior period, was $2,250. Identify the impact of this sales transaction and associated inventory entries on Winston's financial statement elements in the table below (amounts not required): Assets Select] Liabilities [Select Equity [Select Revenue [Select 1 > Expense Select) Net Income [Select 1 Cash [ Select 2. During the current period, Sherman returned goods to its supplier that Sherman had originally purchased for $800 on account in a prior period. At the time of the return, Sherman had not yet paid the supplier. The supplier's customer service department credited Sherman's account for the return. Present the impact of the return on Sherman's financial statement elements during the current period below: Assets Select) > Liabilities [Select) Equity Select) Revenue Select) Expense Select > Equity [Select) Revenue [ Select Net Income (Select) Cash Select