Telecommunications

Handset Installment Plan — In-House Financing

The telecom offers 12-month installment payments for a handset without a third-party lender.

Account NameTypeDebit ($)Credit ($)
Handset Installment Receivable (Current)Asset (+)150.00-
Handset Installment Receivable (Long-Term)Asset (+)1,050.00-
Handset RevenueRevenue (+)-1,200.00

💡 Accountant's Note

When the telecom provides in-house financing, the full handset revenue is recognized at delivery (control has passed). The receivable is split between current and long-term based on when installments are due.

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