Assume the perpetual inventory method is used. 1) The company purchased $13,300 of merchandise on account under terms 2/10, n/30. 2) The company returned $2,800 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period 4) All of the merchandise purchased was sold for $20,600 cash. What effect will the return of merchandise to the supplier have on the accounting equation? Multiple Choice None. it is an asset exchange transaction. Assets and liabilities are reduced by $2,800 Assets and equity are reduced by $2.800