What effect will the return of merchandise

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Question - Assume the perpetual inventory method is used.

The company purchased $13,900 of merchandise on account under terms 2/10, n/30.

The company returned $3,400 of merchandise to the supplier before payment was made.

The liability was paid within the discount period.

All of the merchandise purchased was sold for $21,800 cash.

Required - What effect will the return of merchandise to the supplier have on the accounting equation?

Reference no: EM132701855

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