19.8 You are the newly-appointed credit controller of Mohinder Benton Limited, which produces a summary age analysis of its outstanding trade receivables at each month-end. The company allows 30 days credit. The summary for April 2012 shows the following information:

Category £ % Last month % April 2011 0–30 days 333 644 34.9 36.9 40.2 31–60 days 309 744 32.4 32.7 28.6 60–90 days 150 092 15.7 14.2 19.6 90–120 days 98 468 10.3 9.7 3.4 Over 120 days 64 052 6.7 6.5 8.2 TOTAL 956 000 100.0 100.0 100.0 In addition, the following information is available:

1 In total at the end of April 2012 123 customers owed the company money. Of the 123, 14 had been permitted to exceed their credit limits, and a further 26 had reached their credit limits.

2 In the company’s financial year ended 31 December 2011, the company had written off

£36 650 of outstanding receivables.

3 Sixteen customers are currently in dispute with Mohinder Benton Limited because of disagreements about faulty goods, incorrect deliveries and failure to correctly record amounts received.
Required: write a report analyzing the information given above.