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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. Which of the following is true regarding the impact on the statement of financial position for Touch Tronix, Inc. when the payment is made on December 18, 2014?
Rescind
To nullify, terminate, or abrogate a law, order, or agreement.
Contract Rescinded
The act of legally declaring a contract null and void, as if it never existed, typically due to fraud, mistake, or another reason making the contract not viable.
Covenant Not to Compete
A formal agreement where one party commits to refraining from engaging in or initiating a comparable business or occupation in rivalry with another party.
Illegal Agreement
A contract or arrangement that is forbidden by law because it involves actions or terms that violate legal statutes.
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