After Selecting a Sweater on the Land's End Web Site

question 79

Multiple Choice

After selecting a sweater on the Land's End Web site, Kelly was asked to fill in details for the customer database. Kelly was given a form that required her to fill in her name, date of birth, and e-mail address. Kelly then checked a box that was next to the following statement: "Yes, I would like to receive weekly promotional information from Land's End online." Which of the following practices is evident from this scenario?

• A) e-mail hosting service
• B) e-mail spoofing
• C) catalog marketing
• D) contextual advertising
• E) permission-based e-mail marketing

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Definitions:

Allowance Method

A method of accounting for bad debts that involves estimating uncollectible accounts at the end of each period.

Uncollectible Accounts

Accounts receivable that a company does not expect to collect due to the debtor's inability to pay, considered a bad debt expense.

Year-End Adjustment

A financial correction or modification made at the end of a fiscal year to various accounts to properly state them for reporting purposes.

Bad Debts Expense

The portion of receivables that a company anticipates will not be collected and is thus written off as an expense in the financial statements.