Assume the perpetual inventory method is used 1) The company purchased $13,900 of merchandise on account under terms 2/10, n/30. 2) The company returned $3,400 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 $21,800 cash What effect will the return of merchandise to the supplier have on the accounting equation? Multiple Choice Assets and equity are reduced by $3,400. Assets and liabilities are reduced by $3,332 Assets and liabilities are reduced by $3,400 None. It is an asset exchange transaction