Is cheques received from credit customers a sales?

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1022482

2026-07-18 15:25

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No, cheques received from credit customers are not classified as sales; they represent the payment for sales made on credit. When a sale is made on credit, it is recorded as revenue at the time of sale, while the receipt of the cheque is a cash inflow that reduces accounts receivable. Thus, the cheque signifies the collection of previously recognized sales revenue, rather than a new sale.

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