Larimar Computers Provides Customers the Option to Purchase Products with Three

question 52

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 2021, 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 2021 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:

Emotional Flooding

A state where an individual feels overwhelmed by emotions to the point where it becomes difficult to think clearly or react rationally.

Genuineness

In therapeutic relationships, it refers to the therapist's ability to be authentic and transparent with their feelings and thoughts.

Unconditional Positive Regard

A therapeutic stance characterized by accepting and supporting clients without judgment, a core concept in person-centered therapy.

Conditions of Worth

Standards that individuals believe they must meet to earn positive regard and acceptance from others.