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

Answer

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

Step-by-step explanation:

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answer: kevoto

explanation: be healthy

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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