Help Save & 1) The company purchased $13,700 of merchandise on account under terms 3/10, 1/30. 2) The company returned $3,200 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 have on the accounting equation? Multiple Choice Assets and equity are reduced by $3,200. O Assets and liabilities are reduced by $3,104 C) Assets and liabilities are reduced by $3,200. C ) None. It is an asset exchange transaction !!! Next >