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DEF Inc. is a retail business that offers credit sales to its customers. Explain the accounting treatment for credit sales, including the recognition of revenue,



DEF Inc. is a retail business that offers credit sales to its customers. Explain the accounting treatment for credit sales, including the recognition of revenue, recording of accounts receivable, and the impact on the company's financial statements. DEF Inc. recorded credit sales of $1,000,000 during the fiscal year. Discuss the potential risks associated with credit sales and how DEF Inc. can mitigate these risks while maintaining its sales growth.


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