Use of the installment sales method indicates little uncertainty about collection of the receivable.

Question

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The use of the installment sales method does not necessarily indicate certainty about the collection of receivables. The method simply allows a company to recognize revenue and income over the period that they expect to collect payment, rather than recognizing the full amount immediately. There may still be some uncertainty about whether or not the full amount will be collected.

Use of the Installment Sales Method Indicates Little Uncertainty About