Discuss cash receipt was recorded as part of sales revenue

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Nicknacks recently signed an agreement with a "Dollar Store" to supply them with gold and silver charms. The contract is worth $100,000 and will commence in February of 2015. Nicknacks received and cashed a $20,000 cheque from the customer in November 2014 in respect of this contract. The cash receipt was recorded as part of sales revenue.

Reference no: EM131809726

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