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Touch Tronix, Inc

question 167

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Touch Tronix, Inc.sells component parts to Advanced Communications, Inc.a cell phone manufacturer.On December 10, 2011, Touch Tronix, Inc.sold €680,000 of goods to Advanced Communications, Inc.on account for €880,000.Terms of the sale were 2/10, net 30.Advanced Communications, Inc.paid €13,000 in freight charges.On December 13, 2011, Advanced Communications, Inc.returned 5% of the goods due to inferior quality.On December 18, 2011, Advanced Communications, Inc.paid the account in full.Advanced Communications, Inc.uses a perpetual inventory system.If Advanced Communications, Inc.has not yet sold any of these goods, what is the ending balance in the inventory account after the payment is made?


Definitions:

Proficiency

The level of skill or competence in a particular activity or domain, often acquired through practice or study.

Probability

The measure of the likelihood that an event will occur, quantified between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Power of the Test

The probability that the test correctly rejects a false null hypothesis, measuring the test's ability to detect an effect if there is one.

Unemployment Rate

The ratio of the labor force that is currently unemployed but actively looking for work opportunities.

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