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Larimar Computers Provides Customers the Option to Purchase Products with Three

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Essay

Larimar Computers provides customers the option to purchase products with three installment payments made over 12 months (equal payments at the end of the 4th,8th,and 12th months).In January 2018,Larimar sold $39,000 of computers to one customer on this installment plan.The cost of these computers is $30,420.
Required:
Using the installment sales method,record the journal entries for Larimar's installment sales made in January 2018 and the subsequent payments received on each installment date.Assume all installment payments are received,and ignore the time value of money.


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