Suppose charles owns a lawn-mowing company. assume that without workers, no yards are mowed. when he hires one worker, he is able to mow 44 yards per day. with two workers, he can mow 99 yards per day, and with three workers, he can mow 1616 yards per day.

Assume the perpetual inventory method is used. 1) the company purchased $12,500 of merchandise on account under terms 2/10, n/30. 2) the company returned $1,200 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 $18,800 cash. what effect will the return of merchandise to the supplier have on the accounting equation?