Larimar Computers Provides Customers the Option to Purchase Products with Three

question 32

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.

---

Definitions:

Interconnected

refers to the state of being connected with each other, especially in terms of systems, devices, or networks allowing for communication or interaction.

Social Engineering

Getting around security systems by tricking computer users inside a company into revealing sensitive information or gaining unauthorized access privileges.

Confidential

Information or material designated as private or secret, requiring careful handling and restricted access to protect privacy or integrity.

Credit Bureaus

Institutions that collect and compile individual credit histories, providing credit reports to lenders for decision-making purposes.