Larimar Computers Provides Customers the Option to Purchase Products with Three

question 42

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 2012, 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 2012 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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Definitions:

School-age Child

A child who is in the age range where they are attending school, typically considered to be between the ages of 6 and 12.

Opposite Sex

Refers to the gender different from one's own, typically referring to the binary gender system where male and female are considered opposites.

Psychosocial Development

The process of psychological and social growth that occurs throughout a person's life, as conceptualized by Erik Erikson.

Health Examination

A thorough assessment of a person's physical condition often including various tests to detect diseases early.