Assume the perpetual inventory method is used

- The company purchased $12,900 of merchandise on accounts under terms 3/10, n/30

- The company returned $2,400 of merchandise to the supplier before payment was mad.

-The liability was paid within the discount period.

- All of the merchandise purchased was sold for $19,800 cash.

What effects will the return of merchandise to the supplier have on the accounting equation?

A. Assets and stockholder's equity are decreased by $2,400

B. Assets are liabilities are decreased by $2,328

C. Assets and liabilities are decreased by $2,400

D. None. It is an asset exchange transaction.