You Own an Internet Company That Sells Gift Baskets

question 47

Essay

You own an internet company that sells gift baskets.A customer can pick out what s/he wants to put in the basket from a broad range of items to make it a more personalised gift.You collect demographic information about the buyer such as address and phone number that you store in your database alongside the specific contents of the gift basket ordered.You also have stored the addresses of the basket recipients,when the basket was sent,and if it was sent for a special occasion such as a birthday or anniversary.How can you use this database?

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Definitions:

Direct Write-off Approach

An accounting method for dealing with bad debts where specific accounts receivable are written off against income at the time they are determined to be uncollectible.

Normal Balance

The side of an account that is increased, which for assets, expenses, and dividends is the debit side, and for liabilities, equity, and revenue is the credit side.

Financial Statement

A documented account detailing the commercial operations and fiscal outcomes of an enterprise.

Normal Balance

The usual balance of an account based on its classification in the accounting system, typically debit for assets and expenses, and credit for liabilities, equity, and revenue.