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:

Multiple Transitions

Experiences of undergoing several changes or passages from one state, stage, or place to another, which can affect personal development.

Emotional and Behavioral Difficulties

Challenges related to emotions and behavior, which can impact an individual's ability to effectively engage in daily activities.

Well-Functioning Stepfamilies

Stepfamilies that have successfully managed to integrate, creating a stable and supportive home environment for all members.

Maximum Flexibility

The highest degree of adaptability and willingness to adjust or change in response to different circumstances or requirements.