Assume the perpetual inventory method is used.
• The company purchased $14,000 of merchandise on account under terms 2/10, n/30.
• The company returned $3,500 of merchandise to the supplier before payment was made.
• The lability was paid within the discount period.
• All of the merchandise purchased was sold for $22.000 cash
What effect will the retum of merchandise to the supplier have on the accounting equation?