Touch Tronix, Inc $€ 680,000$ Of Goods to Advanced Communications, Inc $€ 880,000$

Multiple Choice

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 . On December 18,2011 , 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 $18,2011 ?$

A) Cash decreased by $€ 666,400$ .
B) Inventory decreased by $€ 13,600$ .
C) Accounts payable decreases by $€ 680,000$ .
D) Inventory decreased by $€ 17,600$