Darlington Company entered into the following business events during its first month of operations.

The company uses the perpetual inventory system.

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 in event (2) have on Darlingtons financial statements?