Assume the perpetual inventory method is used. The company purchased $12,500 of merchandise on account under terms 2/10, n/30. The company returned $1,200 of merchandise to the supplier before payment was made. The liability was paid within the discount period. All of the merchandise purchased was sold for $18,800 cash. What effect will the return of merchandise to the supplier have on the accounting equation? Multiple Choice Assets and liabilities are decreased by $1,176. None. It is an asset exchange transaction. Assets and liabilities are decreased by $1,200. Assets and stockholders' equity are decreased by $1,176