TB MC Qu. 3-47 (Static) Assume the perpetual Inventory method is used... Assume the perpetual inventory method is used The company purchased $12.500 of merchandise on account under terms 2/10, 1/30. The company returned $1.200 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 $18.800 cash. What effect will the return of merchandise to the supplier have on the accounting equation? Multiple Choice O Assets and stockholders' equity are decreased by $176. Assets and liabilities are decreased by $1,76 Assets and liabilities are decreased by $1.200 None. It is an asset exchange transaction