On December 15, Duncan Collected Revenue of $3,000 in Advance

question 25

Essay

On December 15, Duncan collected revenue of $3,000 in advance from a new client, and agreed to provide services to the client for the period of December 15 through January 15 of the following year. Assuming Duncan records unearned revenues using the alternative treatment, journalize the adjusting entry recorded on December 31.

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Definitions:

Focused Marketing

A strategic approach where marketing efforts are intensely directed at a specific market segment or demographic, tailoring products and advertising to appeal to that group.

Institutional Markets

Markets where transactions occur between institutions such as businesses, governments, and non-profits, rather than between a business and individual consumer.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Consumer Buying Process

The stages a consumer goes through when deciding to purchase a product, typically including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.