Garment paid for on receipt in Massachusetts (4,3)
I believe the answer is:
cape cod
'receipt in massachusetts' is the definition.
The definition suggests a singular noun which matches the answer.
'garment paid for' is the wordplay.
'garment' becomes 'cape' (cape is a kind of garment).
'paid for' becomes 'cod' (I can't justify this - if you can you should believe this answer much more).
'cape'+'cod'='CAPE COD'
'on' is the link.
Can you help me to learn more?
(Other definitions for cape cod that I've seen before include "East coast resort" , "New England resort area" , "American promontory" , "New England promontory" , "Peninsula in Massachusetts" .)