Mr Laban Liphoto owns Scrap Metal Traders Incorporated.The business has a significant volume of credit transactions with suppliers and customers. The following information was obtained from the accounting records of Scrap Metal Traders (SMT) on 31 May 2023: Additional information: (0) An amount of R 2445 in the payables column of the cash payments journal is in respect of an unhonoured credit card transaction that was received from Mr Lawi Malepe, a trade receivable. (ii) Interest amounting to R 1275 still has to be charged to the overdue account of Mr Ayanda Badaye. (iii) The journal credits in respect of the accounts payables include R750 in respect of interest charged by Steel Works, a trade payable, which has to be reversed. (iv) The total of the accounts receivables column in the cash receipts journal includes R1875, which was received from Mr Harry Wire, whose account was previously written off as a credit loss. (v) The total of the accounts payables column in the purchase journal was overstated by R6000. (vi) Credit losses amounting to R 7500 must still be written off as at 31 May 2023. (vii) Mr Liphoto, a friend of yours, overheard a discussion at work about changes her competitors (i) An amount of R 2445 in the payables column of the cash payments journal is in respect of an unhonoured credit card transaction that was received from Mr Lawi Malepe, a trade receivable. (ii) Interest amounting to R 1275 still has to be charged to the overdue account of Mr Ayanda Badaye. (iii) The journal credits in respect of the accounts payables include R750 in respect of interest charged by Steel Works, a trade payable, which has to be reversed. (iv) The total of the accounts receivables column in the cash receipts journal includes R1875, which was received from Mr Harry Wire, whose account was previously written off as a credit loss. (v) The total of the accounts payables column in the purchase journal was overstated by R 6000 . (vi) Credit losses amounting to R 7500 must still be written off as at 31 May 2023. (vii) Mr Liphoto, a friend of yours, overheard a discussion at work about changes her competitors want to make in accounting for credit losses from credit customers. Mr Liphoto knows little about accounting, and she asks you to help make sense of what he heard about alternative approaches to determining credit losses in the calculation of business profits