Mastery Problem: Accounting for Retail Businesses

Merchandising Transactions

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

As a retail company, Dolfin Corporation uses theperpetual inventory system. To prepare for this assignment, you have been asked to review your knowledge ofsalesand purchase transactions by completing the following table.

Consider the effect of each transaction on the three accounts listed, and identify which accounts are debited or credited. If not affected by the transaction, select "No Effect".