Assume the perpetual iffentory mechod is used.

James company purchased $$13,400$ of menchandise on accoumt under terms $\frac{4}{10}.$ n $30$ from $5$ mith Comparty.

armes compary telurned $$2,900$ of iverchandise to the suppler before podyment was made.

hames Comparty nats for the merthercisc whthil the d scount puriad

lames Comparty sold the comaining merchantive puronased for $$20,800$ cash.

What effect wil the return of merthand se by James Company to Smith Company have un the accounting equation of james Compat

A$.$ Assits and Iablition are decreased by

$$2\mathrm{.}900$

B$.$ Assets and vquiry are decreined by

$32,900$

C$.$ Assess and equ ty are increased by

$$2\mathrm{.}784$

Q$.$ Assets and reqity are increased by

$$2\mathrm{.}909$

E$.$ Assess and equity are decreanot by

$52\mathrm{.}764$