Touch Tronix, Inc. sells component parts to Advanced Communications, Inc. a cell phone manufacturer. On December 10, 2020, Touch Tronix, Inc. sold €1,700,000 of goods to Advanced Communications, Inc. on account for €2,200,000. Terms of the sale were 2/10, net 30. On December 18, 2020, 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, 2020? a. Assets decreased by €2, 200, 000. b. Assets decreased by €44,000. c. Assets increased by €2,156,000. d Assets decreased by €32,500.
Touch Tronix, Inc. sells component parts to Advanced Communications, Inc. a cell phone manufacturer. On December 10, 2020, Touch Tronix, Inc. sold €1,700,000 of goods to Advanced Communications, Inc. on account for €2,200,000. Terms of the sale were 2/10, net 30. On December 18, 2020, 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, 2020? a. Assets decreased by €2, 200, 000. b. Assets decreased by €44,000. c. Assets increased by €2,156,000. d Assets decreased by €32,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Touch Tronix, Inc. sells component parts to Advanced Communications, Inc. a cell phone manufacturer. On December 10, 2020, Touch Tronix, Inc. sold
€1,700,000 of goods to Advanced Communications, Inc. on account for €2,200,000. Terms of the sale were 2/10, net 30. On December 18, 2020, 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, 2020? a. Assets decreased by €2,200,000. b. Assets decreased by €44,000. c. Assets increased by
€2, 156, 000. d Assets decreased by €32, 500.
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