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Assume the perpetual method is used. The company purchased 13,600 merchandise on account under terms 2/10, n/30. The company returned 3,100 of merchandise to the
Assume the perpetual method is used. The company purchased 13,600 merchandise on account under terms 2/10, n/30. The company returned 3,100 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 21,200 cash.
What effect will the return of merchandise to the supplier have on the accounting equation?
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