![]() ![]() Record installment sales separately from other types of sales, and keep track of the related receivables, layered by the year in which the receivables were originally created. The following steps are used to account for an installment sale transaction: The accounting staff should track the amount of deferred revenue remaining on each contract that has yet to be recognized, as well as the gross margin percentage on installment sales in each separate year. Use of the installment method requires an enhanced level of record keeping for the duration of the associated installment payments. When accounts receivable are eventually collected, a portion of the deferred gross profit from the following calculation is recognized: ![]() The installment method is more conservative, in that revenue recognition is pushed off into the future, thereby making it easier to tie actual cash receipts to revenue.Īn overview of the installment method is that someone using it defers the gross margin on a sale transaction until the actual receipt of cash. The installment method is better than generic accrual basis accounting when payments may be received for a number of years, for the accrual basis may recognize all of the revenue up front, without factoring in all of the risk inherent in the transaction. This is an ideal recognition method for large-dollar items, such as real estate, machinery, and consumer appliances. The primary circumstance under which the installment method is used is a transaction in which the buyer makes a number of periodic payments to the seller, and it is not possible to determine the collectability of cash from the customer. Because of the long period of time involved, the risk of loss from customer nonpayment is higher, so a prudent person would defer the recognition of some portion of the sale - which is what the installment method does. Released 2022, March 18 BODY Dimensions 247.6 x 178.5 x 6.1 mm (9.75 x 7.03 x 0.24 in) Weight 461 g (Wi-Fi) / 462 g (5G) (1.02 lb) Build Glass front, aluminum back, aluminum frame SIM Nano-SIM, eSIM Stylus support (2nd gen) DISPLAY Type Liquid Retina IPS LCD, 500 nits (typ) Size 10.9 inches, 359.2 cm2 (~81.3% screen-to-body ratio) Resolution 1640 x 2360 pixels (~264 ppi density) Protection Scratch-resistant glass, oleophobic coating True-tone Wide color gamut PLATFORM OS iPadOS 15.4, upgradable to iPadOS 15.4.1 Chipset Apple M1 CPU Octa-core MEMORY Card slot No Internal 64GB, 256GB 8GB RAM MAIN CAMERA Single 12 MP, f/1.8, (wide), 1/3", 1.22µm, dual pixel PDAF Features HDR Video gyro-EIS SELFIE CAMERA Single 12 MP, f/2.4, 122˚ (ultrawide) Features HDR Video SOUND Loudspeaker Yes, with stereo speakers 3.5mm jack No COMMS WLAN Wi-Fi 802.11 a/b/g/n/ac/6, dual-band, hotspot Bluetooth 5.0, A2DP, EDR GPS Yes, with A-GPS, GLONASS (5G model only) NFC No Radio No USB USB Type-C 3.1 Gen2, DisplayPort magnetic connector FEATURES Sensors Fingerprint (top-mounted), accelerometer, gyro, compass, barometer BATTERY Type Li-Ion (28.When a seller allows a customer to pay for a sale over multiple years, the transaction is frequently accounted for by the seller using the installment method. NETWORK Technology GSM / HSPA / LTE / 5G LAUNCH Announced 2022, March 08 Status Available.
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