Assume the perpetual inventory method is used. 1) The company purchased $14,000 of merchandise on account under terms 2/10, n/30. 2) The company returned $3,500 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 $22,000 cash. What effect will the return of merchandise to the supplier have on the accounting equation? Multiple Choice Assets and equity are reduced by $3,500. None. It is an asset exchange transaction. On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $62,600 and $1,100, respectively. During the year Kincaid reported $148,000 of credit sales. Kincaid wrote off $1,150 of receivables as uncollectible in Year 2 Cash collections of receivables amounted to $154,500. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. Kincaid's entry to recognize the write-off of the uncollectible accounts will: Multiple Choice 0 ) decrease total assets and total equity. 0 ) increase total assets and decrease total equity 0 C) increase total assets and total equity Assume the perpetual inventory method is used. 1) The company purchased $14,000 of merchandise on account under terms 2/10, n/30. 2) The company returned $3,500 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 $22,000 cash. What effect will the return of merchandise to the supplier have on the accounting equation? Multiple Choice Assets and equity are reduced by $3,500. None. It is an asset exchange transaction. What effect will the return of merchandise to the supplier have on the accounting equation? Multiple Choice Assets and equity are reduced by $3,500. None. It is an asset exchange transaction Assets and liabilities are reduced by $3,500. Assets and liabilities are reduced by $3,430. Middleton Company uses the perpetual inventory method. The company purchased an item of inventory for $150 and sold the item to a customer for $270. What effect will the sale have on the company's inventory account? Multiple Choice 0 The account will decrease by $270. 0 The account will decrease by $120. 0 No effect 0 The account will decrease by $150. The Miller Company earned $109,000 of revenue on account during Year 2. There was no beginning balance in the accounts receivable and allowance accounts. During Year 2. Miller collected $75,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account. The amount of uncollectible accounts expense recognized on the Year 2 income statement was: Multiple Choice 0 $34,000 0 0 The amount of uncollectible accounts expense recognized on the Year 2 income statement was: Multiple Choice O $34,000. $3,270 . $2,250. 0 $1,020. $1,020