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iragen [17]
3 years ago
5

Darlington Company entered into the following business events during its first month of operations. The company uses the perpetu

al inventory system.
1) The company purchased $12,500 of merchandise on account under terms 3/10, n/30.
2) The company returned $2000 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 $19,000 cash.
What effect will the return of merchandise to the supplier in event (2) have on Darlington's financial statements?

a. Assets and stockholders' equity decrease by $2000.
b. None.
c. It is an asset exchange transaction.
d. Assets and liabilities decrease by $1940.
e. Assets and liabilities decrease by $2000.

Business
1 answer:
GarryVolchara [31]3 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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