Merchandising Transactions You are working as a summer intern for Auditing, Inc. You have been asked to help resolve discrepancies nated in the audit for Dofin Corporation, retailer of specialty aquarium supplies. As a retail company. Delfin Corporation uses the perpetual entory system to prepare for this wegment, you have been asked to revies your knowledge of sales wd purchase transactions by completing the following table Consider the effect of each transaction on the three accounts listed, and dentify which accounts are debited or creded. If not affected by the transaction, select "No act Inventory Estimated Returns Inventory Cost of Goods Sold Purchase of merchandise for resale Cash sale of merchandise Customer returns Yearly estimate for customer returns Freight paid for merchandise purchased on shipping point Tatum of merchandise surchased for resale Freight paid for sale with a destination Sale on account Customer payment on Payment of service for for proceng credit card als Auditing Observations etter pero trough the counting records of Dolfin Corporation in datele de soditur made a set of bervation. * *** kad to move the effect of these observation Tor each hervation dantit nicht on the income statement averted or understated. If not afected by the be the feet Operating Observations Sales Coat of Goods Sold Gross Prolit Operating Income Expert Operating Inco Ali Orvation Wher going through the counting records of Bollin Corporation in detail the suite de list of observation. You have been to the afect of these brate Foreschorvation dentity which won the income statement are overstated or understated. If not affected by the servation, select the "No Difect Operating Observations Sales Cast of Goods Gross Profit Expenses While the company accountant was on vacation, the cost of each sale was not recorded for sales transactions Alfreghens were charged to Delivery Expense regardless of the terms of sale Customer rebrna and allowances were ometimes debited to Estimatums Theory and credite Sales Orion supplies induded in tative Sales tax collected on each sale as credited to stoode sol was credited to collaneous Seling Expo Credit card processing fees were debited to cost of Goods Sold. Income Statement The accountant for Dolfin Corporation prepared the following income state Dolfin Corporation Income Statement For the Year Ended December 31, 2018 Sales $320,340 Expenses: Cost of goods sold $217,831 Selling expenses 41,644 Administrative expenses 35,237 Interest expense 275 Total expenses (294,987)