Question

Installment Accounts Receivable are classified as non-current assets if the installment period is more than one year, even if the seller regularly offers customers such terms. True or False

Answer 1

The Statement is False

Installment accounts receivable are classified as current assets if credit period exceeds one year even if the merchant regularly offers customers such terms. Customers are usually charged interest.

Installment sales and receivables are amounts owed by customers from credit sales where payment is required in periodic amounts over an extended time period. They are recorded as current assets