Syed and Marino Li Own a Small Furniture Consignment Shop

question 41

Multiple Choice

Syed and Marino Li own a small furniture consignment shop in Atlanta, GA. Syed is designing a database that will allow them to keep track of item information and seller information. Each item is assigned to one seller; however, each seller may be assigned multiple items in the database. The database will contain the following information: item identification number, item description, seller code, condition of item, retail price of item, item quantity, date item received, condition of item, date the item is sold, the final sale price of the item, seller name, seller address, and seller contact information. Using appropriate database design guidelines, answer the following questions.
-Based on the information to be included in the database, what is the best way to avoid data redundancy in the database?

• A) store data for each field in only one table (excluding the common field)
• B) store data for each field in multiple tables (excluding the common field)
• C) create a composite primary key (including the common field)
• D) change field properties for all fields to require data input

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Definitions:

Bad Debts Expense

An expense recognized when it is probable that receivables will not be collected and is considered a cost of doing business on credit.

Allowance for Doubtful Accounts

A contra asset account that represents estimated uncollectible amounts from customers, reducing the gross receivables to their net realizable value.

Bad Debts Expense

The cost recognized when a company determines that a customer's loan or receivable account is uncollectible.

Allowance Method

An accounting technique used to estimate and adjust accounts receivable for amounts that are unlikely to be collected.