Installment Sales Method
The installment sales method, is used to recognize revenue after the sale has occurred and when sales are stipulated under very extended cash collection terms. In general, when the risk of not being able to collect is reasonably high and when there is no reasonable basis for estimating the proportion of installment accounts, revenue recognition is deferred, and the installment sales method is used. The installment sales method are typically used to account for sales of consumer durables, retail land sales, and retirement property. Under the cost recovery method, another method to recognize income after the sale is made, no profit is recognized until all the costs are recovered.
Read more about this topic: Installment Sales Method
Famous quotes containing the words installment, sales and/or method:
“Civil Rights: What black folks are given in the U.S. on the installment plan, as in civil-rights bills. Not to be confused with human rights, which are the dignity, stature, humanity, respect, and freedom belonging to all people by right of their birth.”
—Dick Gregory (b. 1932)
“The damned are in the abyss of Hell, as within a woeful city, where they suffer unspeakable torments, in all their senses and members, because as they have employed all their senses and their members in sinning, so shall they suffer in each of them the punishment due to sin.”
—St. Francis De Sales (1567–1622)
“Direct action ... is the logical, consistent method of Anarchism.”
—Emma Goldman (1869–1940)