Brad Wilson Sells a Scanner That Converts Large Documents to an Electronic

question 65

Multiple Choice

Brad Wilson sells a scanner that converts large documents to an electronic format for editing and printing items up to six feet long and four feet wide.He spends the morning showing his product to the marketing manager of a large department store,which had been identified by his sales force as a prospect.The manager is excited about the idea of being able to have multiple usages of a graphic designed sign.When Brad asks the manager if she is willing to buy,she says,"No,all purchases must be made through our purchasing department." Which of the following questions of the qualifying process will help Brad determine the manager as a lead but not a true prospect?

• A) Does the lead have the ability to pay?
• B) Can the lead be approached favorably?
• C) Does the lead have a need that can be satisfied by the purchase of the firm's products or services?
• D) Does the lead have the authority to pay?

---

Definitions:

Aging Analysis

A method used to estimate the collectability of accounts receivable by categorizing receivables by their age (time outstanding).

Uncollectible Accounts Expense

An expense account reflecting the cost of accounts receivable that a company does not expect to collect.

Allowance for Doubtful Accounts

A contra asset account that reduces the total amount of accounts receivable on the balance sheet to reflect the likelihood of some accounts being uncollectible.

Net Credit Sales

The total value of sales made on credit after subtracting any returns and allowances, reflecting the actual sales revenue expected to be collected.