Mustang Corporation reports the following for the month of April: Finished goods inventory, April 1 $ 30,200 Finished goods inventory, April 30 24,600 Total cost of goods manufactured 114,500 The cost of goods sold for April 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?