Assume the perpetual inventory method is used. 1) The company purchased $13,400 of merchandise on accoun 2) The company returned $2.900 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 $20,800 cash What effect will the return of merchandise to the supplier have on the accounting equation? Multiple Choice None. It is on asset exchange transaction Assets and equity are reduced by $2.900 Multiple Choice None. It is an asset exchange transaction. Assets and equity are reduced by $2,900 Assets and liabilities are reduced by $2,900 Assets and liabilities are reduced by $2.784