What Effect Will the Return of Merchandise to the Supplier

question 26

Multiple Choice

What effect will the return of merchandise to the supplier have on the accounting equation?

• A)Assets and equity are reduced by $1,500.
• B)Assets and liabilities are reduced by $1,470.
• C)Assets and liabilities are reduced by $1,500.
• D)None. It is an asset exchange transaction.

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Definitions:

Use Of Violence

The intentional application of force to harm, intimidate, or control others.

Joyriding

The act of driving a vehicle without the owner's permission, typically done for thrill or enjoyment, rather than for the purpose of committing a theft.

Commit Another Crime

The action of engaging in illegal activities or offenses after previously offending.

Auto Thieves Arrested

The apprehension by law enforcement of individuals accused of stealing automobiles, typically leading to legal prosecution.