Jane Services Sells a Service Plan for Commercial Computer Maintenance

question 63

Essay

Jane Services sells a service plan for commercial computer maintenance. The price is $1,350 per year, paid in advance. On October 1, 2015, Jane sells a service plan to a new customer for cash, and the plan covers the period October 1, 2015 to September 30, 2016. Provide the journal entry to record the adjustment needed on December 31, 2015.

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Definitions:

Objective-and-task Method

The objective-and-task method is a budgeting technique where a company defines specific marketing objectives and then estimates the costs of tasks needed to achieve these objectives, thereby determining the marketing budget.

IMC Budgeting

IMC stands for Integrated Marketing Communications; it refers to the process of allocating funds towards a cohesive marketing strategy that integrates various communication tools and channels.

Set Objectives

The process of defining specific, measurable goals that a person or organization aims to achieve within a timeframe.

Determine Costs

The process of calculating the total expenditure required for producing a product or service, including materials, labor, and overhead expenses.