Assume the perpetual inventory method is used.

• The company purchased $13,900 of merchandise on account under terms 2/10, n/30.
• The company returned $3,400 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 $21,800 cash.

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