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2. Adnan Company is a trader in the UAE and a long-standing customer of Datexx limited. He has AED 70,000 credit facility at his disposal.

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2. Adnan Company is a trader in the UAE and a long-standing customer of Datexx limited. He has AED 70,000 credit facility at his disposal. Adnan currently has AED 32,000 outstanding payable on 28 September 2020 and has occasionally missed the deadline for payments. Adnan recently made the following transactions with Datexx Customer AED 6 32,000 1st October 2020 - Previous balance outstanding 14 October 2020 - Ordered electronic parts on purchase order 1133 1* October 2020 - order processed by workers and packaged 48,000 Yes Yes 2nd October 2020 - order dispatched by courier to Adnan 2nd October 2020 - Invoice raised and sent to Adnan with purchase order 1133 Yes Credit extension approval A junior manager approved the extended credit to Adnan Company as they are close friends and the junior manger trusts Adnan Company as they have known each other for past ten years. Company policy on exceeded credit limit Company policy is that a customer may occasionally go over the credit limit by no more! than 10% of the total credit limit facility afforded to that customer. For example, if a customer has total credit facility of AED 40,000, they can be allowed to go over by no more than AED 4,000. However, two conditions are attached to this facility: 1. The customer must not have previously missed any payment deadlines 2. The increase over the credit limit is approved by a senior manager Required: Required: a. Calculate the new balance outstanding at 2nd October 2020 b. Identify and explain the weakness in credit control procedures and processes in Adnan's case from the scenario. c. Discuss the internal control procedures that should have been applied to Adnan's case and why there is a failure in respect of Adnan d. Suggest three methods how Adnan's can be encouraged to pay his debt either early or within his credit facility timeframe

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