On July 1, Wiggins Associates Enters into a Contract to Provide

question 29

Essay

On July 1, Wiggins Associates enters into a contract to provide consulting services to Pennsylvania University (PU). The contract is anticipated to last four months and is intended to achieve significant cost savings at the university. The contract stipulates that PU will pay Wiggins $25,000 at the end of each month, and, if total cost savings reach a specific target, PU will pay an additional $20,000 to Wiggins at the end of the contract. Wiggins estimates a 75% chance that cost savings will reach the target.
-Assume that Wiggins estimates variable consideration as the expected value.
Required:
Prepare the journal entry on July 31 to record the first month of revenue under the contract.

Comprehend the impact of overpromotion on employee morale and productivity.

Recognize the significance of time management in top management roles.

Distinguish between relational skills and their importance at various management levels.

Understand the relevance of conceptual skills across different management levels.

---

Definitions:

Personal Selling Process

A direct marketing approach involving face-to-face interaction between salespersons and prospective customers to present and sell products or services.

Personal Selling Process

A series of steps salespeople use, from prospecting to closing, to persuade consumers to make a purchase.

Qualified Prospect

A potential customer who has been researched and vetted to meet certain criteria making them more likely to purchase.

Personal Selling Process

The steps taken by a salesperson to engage, convince, and close deals with customers, often involving interpersonal interaction.