Question 1 Bata manufactures a high volume of reasonably prices shoes for elderly people.tge company has a trade receivables ledger that is material to the financial statements containing four different categories of account l.the categories of account and the risks associated with them are as follows small retails shop these accounts represent nearly two thirds of the accounts on the ledger by number and one third of the receivables by value. Some of these customers pay promptly others very slow large retails shoe shops including a number of overseas accounts that sell a wide range of shoes. some of these accounts are large and overdue chains of discount sheo shoes that buy their inventory centrally. these accounts are mostly well established high street chains. Again some of these accounts are large and overdue and mail order companies who sell the company's shoes there have been a number of large new accounts in this category although there is no history of irrevocable debts in this category....

a. Classify the risks relating to the four categories of trade receivables as high medium or low and explain your classification b. describe the internal controls that you would recommend to Twinkletoes to manage the risks associated with the receivables ledger under the headings all customers slow paying customers larger accounts overseas customers