1) The company purchased $13,200 of merchandise on account under terms 3/10, n/30. 2) The company...

 

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1) The company purchased $13,200 of merchandise on account under terms 3/10, n/30. 2) The company returned $2,700 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 $20,400 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 $2.700. Assets and liabilities decrease by $2,619, None. It is en asset exchange transaction. Assets and liabilities decrease by $2,700. 1) The company purchased $13,200 of merchandise on account under terms 3/10, n/30. 2) The company returned $2,700 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 $20,400 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 $2.700. Assets and liabilities decrease by $2,619, None. It is en asset exchange transaction. Assets and liabilities decrease by $2,700.

Answer rating: 100% (QA)

1 OPTION Assets liabilities decrease by 2700 EXPLANATION The inventory is purchased t... View the full answer