Accounting Methods

A layaway plan is a form of deferred payment that allows customers to purchase items from a store on terms. They put down the item price, and pay it off in installments over time. A customer can use this service when they want an expensive item but do not have enough money saved up yet or if they are saving for something special. This way, stores know their sale will be paid for at some point—even though there might not be cash upfront—and stay open longer hours with more potential shoppers coming through the doors before closing them forever because no one ever came by.