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.