A company buys raw materials from an affiliated business and also makes working capital advances to that affiliate from time to time. When spreading the companys financial statements, how should receivables and payables to the affiliate be classified?

A.Receivables should be reported as current assets while the payables are reported as current liabilities

B.Receivables should be reported as non-current assets while the payables are reported as non-current liabilities

C.Receivables should be reported as non-current assets while the payables are reported as current liabilities

D.Receivables should be reported as current assets while the payables are reported as non-current liabilities