Outrageously Funny Word Dictionary :: Precancels

👉 In accounting, "precancels" refers to a specific practice in which an entity records a debit for the amount of any sales that have not yet been collected. This is typically used when a customer has paid for goods or services but does not receive the item within the agreed-upon time frame. For example, if a company sells a product to a customer and receives payment by check, but the customer only pays for the shipping charges, the company records this as a credit in its accounting system

precancels