Draggi Company is having issues with its collection of cash from its account receivable. The previous accountant analysed the accounts receivable and found many overdue accounts. It was also found that Draggi has been selling goods on credit to customers who are already over the credit limit. Draggi is currently using Microsoft Excel to track the credit system. The general manager suggested buying new computers to solve these issues.

You are the newly hired accountant for Draggi and are required to help the company solve its issues.

Required:

1. Do you agree with the general manager that buying new computers can solve the issues faced by Draggi? Explain your answer. (4 marks)
2. Recommend and explain three (3) improvements to the system that can solve the issues faced by Draggi. (12 marks)