Assume the perpetual inventory method is used. The company purchased $12,700 of merchandise on account under terms 4/10, n/30. The company returned $2,200 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 $19,400 cash. What effect will the return of merchandise to the supplier have on the accounting equation?
Assume the perpetual inventory method is used. The company purchased $12,700 of merchandise on account under terms 4/10, n/30. The company returned $2,200 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 $19,400 cash. What effect will the return of merchandise to the supplier have on the accounting equation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume the perpetual inventory method is used.
- The company purchased $12,700 of merchandise on account under terms 4/10, n/30.
- The company returned $2,200 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 $19,400 cash.
What effect will the return of merchandise to the supplier have on the
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