IBM had the following transactions for December 2023:

• Sold computer systems for $500,000 on account.
• Provided technical support services worth $250,000, to be paid next year.
• Received $120,000 in advance for a service contract to be performed in January 2024.
• Paid salaries of $80,000, with an additional $40,000 accrued.

Required:

1. Record these transactions in the general ledger.
2. Prepare the necessary adjusting entries at year-end.
3. Discuss the importance of revenue recognition principles and adjusting entries in financial accounting.