Assume the perpetual inventory method is used. . The company purchased $13,700 of merchandise on account under terms 3/10, n/30. . The company returned $3,200 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 $21,400 cash. What effect will the return of merchandise to the supplier have on the accounting equation? Multiple Choice Assets and liabilities are decreased by $3,104. Assets and liabilities are decreased by $3,200. None. It is an asset exchange transaction Assets and stockholders' equity are decreased by $3,200. Help

Assume the perpetual inventory method is used. . The company purchased $13,700 of merchandise on account under terms 3/10, n/30. . The company returned $3,200 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 $21,400 cash. What effect will the return of merchandise to the supplier have on the accounting equation? Multiple Choice Assets and liabilities are decreased by $3,104. Assets and liabilities are decreased by $3,200. None. It is an asset exchange transaction Assets and stockholders' equity are decreased by $3,200. Help

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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When sales are made with a right of return, the company_ а. should recognize revenue for the full sales price b. should not recognize any revenue С. record the estimated returns in the Sales Returns account O d. records the returned asset in a separate inventory account
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