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An installment sale is a special type of credit arrangement which provides for payment in periodic installments over a predetermined period of time and results from the sale of real estate, merchandise, or other personal property. In the ordinary credit sale, the collection interval is short(3-90days) and title passes unconditionally to the buyer concurrently with the completion of the sale(delivery). In contrast, in an installment sale the cash down payment at the date of sale is followed by payments over a longer period of time (six months to several years), and in many states the transfer of title remains conditional until the debt is fully discharged.
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What is the difference between hire purchase and installment sales?
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What is the difference between credit sales and accounts payable?
Credit sales referes to sales and accounts payable referes to bank
Explain the difference between a cash and credit transaction for purchass and sales?
explain the difference between cash and credit transaction
What are the types of credits?
Charge accounts, credit card, consumer loans, mortgage loans, and installment sales credit.
What is the difference between hire purchase and credit sales?
1. hire purchase(HP) is an agreement of hire, whereas credit sales is an agreement of sale. 2. ownership of goods is transferred from hire vendor to hire purchaser only when the last installment is paid, but in sales, ownership is transferred immediately to the buyer. 3. price is paid by the hire purchaser through installment which is treated as hire, but in sales price is paid in lumpsum or according to the agreement of sale. 4. the hire vendor can repossess the goods on default. but in sales the seller cannot take back the goods, whatever is the case. 9634357689
What is the difference between sales and cash sales?
In cash sales, payments are made instantly by the buyer/customer to the seller, where as in credit sales, the payments are generally made after a specific period as agreed upon between the buyer and the seller.
How do you record a journal entry for an installment sale?
Installment A/r(dr) Installment sales(cr)
What are the eight types of business transaction?
cash sales, credit sales,purchase on account,collection from sales on account,settlement of purchase on account, direct purchase on cash,installment sales and installment payment
What is the difference between a purchase on account and a sale on account?
Purchase on account means purchases from vendors on credit while sales on account means selling to customers on credit.
What are the differences between hire purchase and credit sales?
1. hire purchase(HP) is an agreement of hire, whereas credit sales is an agreement of sale. 2. ownership of goods is transferred from hire vendor to hire purchaser only when the last installment is paid, but in sales, ownership is transferred immediately to the buyer. 3. price is paid by the hire purchaser through installment which is treated as hire, but in sales price is paid in lumpsum or according to the agreement of sale. 4. the hire vendor can repossess the goods on default. but in sales the seller cannot take back the goods, whatever is the case.
What is installment sales?
What are the main advantages and disadvantages of instalment sales?
What is the difference between the sales objectives and communication objectives?
difference between sales objectives and commuicatio objectives?
