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Darlington Company experienced the following business events during its first month of operations. The company uses the perpetual inventory system. 1) The company purchased

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Darlington Company experienced the following business events during its first month of operations. The company uses the perpetual inventory system. 1) The company purchased $13,800 of merchandise on account under terms 2/10, n/30. 2) The company returned $2,500 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 $21,400 cash. What effect will the return of merchandise to the supplier in event (2) have on Darlington's financial statements? Multiple Choice Assets and stockholders' equity decrease by $2.450. Assets and liabilities decrease by $2.450. Assets and liabilities decrease by $2,500. None. It is an asset exchange transaction.

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