AJY Ltd. Supplies machineries to Zozo Ltd. In AJY books an increase of receivables over 90 days is increasing but the alarming thing is that Zozo Ltd. Has an overdue invoice over 180 days. Zozo has based its payments on the most current machinery pricing on its system instead of the price shown in our invoice which led to underpayment by Zozo Ltd. A 1.25 overdue by more than 180 days is sitting in Zozo Ltd.s accounts receivables.

Required:

A. Identify the issue

B. Do IFRS analysis (if the company uses IFRS)

C. Do ASPE analysis (if the company uses ASPE)

D. Do calculations and journal entries, if required.