Reliable Moving Company reported the following amounts on its balance sheet as of December 31, 2019 and December 31, 2018: 2019 2018 Cash and Receivables $95,000 $155,000 Merchandise Inventory 225,000 250,000 Property, Plant and Equipment, net 750,000 770,000 Total Assets $1,070,000 $1,175,000 Total Liabilities $465,000 $395,000 For the vertical analysis, what is the percentage of total liabilities for December 31, 2018?

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?