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For accrual basis businesses, transactions not paid in cash create an account receivable, an unsecured promise to pay in the future The accounting entry is a debit to accounts receivable and a credit to sales On payment, the account receivable is credited and cash is debited

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A defect which could not be discovered by ordinary and reasonable inspection

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A written statement that is sworn to before an officer of the court who is authorized to administer an oath

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