In general, use of the installment method of accounting for a single sale with payments received over a period of time is more conservative than recognition of revenue at the time of shipment.

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The installment method recognizes revenue over time as payments are received, which is a more conservative approach than recognizing all revenue at the time of shipment. This method takes into account the uncertainty of receiving future payments and the risk of non-payment.

In General, Use of the Installment Method of Accounting for a Single