Xyz corporation has declared a rights offering to stockholders of record on wednesday, november 15th, payable on tuesday, december 5th. under the offer, shareholders need 5 rights to subscribe to 1 new share at a price of $24. fractional shares can be rounded up to purchase 1 full share. the last day to buy xyz shares before they go ex rights is:

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?