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Touch Tronix, Inc

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Touch Tronix, Inc. sells component parts to Advanced Communications, Inc. a cell phone manufacturer. On December 10, 2014, Touch Tronix, Inc. sold €1,020,000 of goods to Advanced Communications, Inc. on account for €1,320,000. Terms of the sale were 2/10, net 30. On December 18, 2014, Advanced Communications, Inc. paid the account in full. Advanced Communications, Inc. uses a perpetual inventory system. Which of the following is true regarding the impact on the statement of financial position for Advanced Communications, Inc. when the payment is made on December 18, 2014?

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Definitions:

Jean Piaget

A Swiss psychologist known for his pioneering work in child development and cognitive theory.

Preoperational Children

A stage in Piaget's theory of cognitive development, typically ages 2 to 7, characterized by symbolic thinking and egocentrism but a lack of logical operations.

Abstract Principles

Fundamental concepts that are not tied to specific instances or examples, often guiding thinking and behavior in a broad range of situations.

Cognitive Abilities

The mental skills and capabilities for learning, thinking, reasoning, problem-solving, and processing information.

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