Warren owns and manages a small business, which sells pet supplies to high street shops and market traders Warren sells to customers on credit at 30 days credit terms (Warren manages all aspects of the business, including delivery and collection of the pet supplies ) The business accounts are balanced at the end of each month, and the transactions are posted daily On 1 March the balances on his accounts were as follows Account name Debit () Credit () Capital 88,000 Van 30,000 Van accumulated depreciation 6,000 Bank 17,280 Receivables control 55,850 Payables control 9,130 103,130 103,130 On 1 March, the debit balances on the receivables ledger accounts were as follows Receivables ledger accounts Adam 12,000 Mercy 27,930 Sherwood 15,920 On 1 March, the credit balances on the payables ledger accounts were as follows Payables ledger accounts Bran 4,000 Gary 2,350 Wendela 2,780 During March, the following transactions took place No Date Amount () Transaction 1 2 March 6,000 Receives payment from customer Adam in part settlement of amounts outstanding 2 3 March 2,500 Warren sells goods to customer Adam on 30 days credit terms 3 6 March 2,000 Warren pays by bank transfer part of the amount outstanding on the account of supplier Gary 4 7 March 1,800 Warren pays the business rent from his personal bank account 5 10 March 27,930 Warren receives payment from customer Mercy in full settlement of the amount outstanding 6 15 March 1,500 Warren purchases goods from supplier Bran on 30 days credit terms 7 17 March 11,000 Warren sells goods to customer Mercy on 30 days credit terms 8 18 March 500 Warren buys a laptop computer for use in the business paying from the business bank account 9 25 March 2,780 Warren pays by bank transfer the full amount outstanding on the account of supplier Wendela 10 30 March 2,000 Warren pays supplier Bran in part settlement of amounts outstanding Required e What do you notice about Warrens management of receivables and payables What advice would you give him regarding his receivables What question might you ask him in respect of payables (The limit for your answer to (e) is 150 words )

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Warren owns and manages a small business, which sells pet supplies to high street shops and market traders. Warren sells to customers on credit at

Warren owns and manages a small business, which sells pet supplies to high street shops and market traders. Warren sells to customers on credit at 30 days credit terms. (Warren manages all aspects of the business, including delivery and collection of the pet supplies.) The business accounts are balanced at the end of each month, and the transactions are posted daily.

On 1 March the balances on his accounts were as follows:

Account name	Debit ()	Credit ()
Capital		88,000
Van	30,000
Van accumulated depreciation		6,000
Bank	17,280
Receivables control	55,850
Payables control		9,130
	103,130	103,130

On 1 March, the debit balances on the receivables ledger accounts were as follows:

Receivables ledger accounts
Adam	12,000
Mercy	27,930
Sherwood	15,920

On 1 March, the credit balances on the payables ledger accounts were as follows:

Payables ledger accounts
Bran	4,000
Gary	2,350
Wendela	2,780

During March, the following transactions took place:

No.	Date	Amount ()	Transaction
1	2 March	6,000	Receives payment from customer Adam in part settlement of amounts outstanding
2	3 March	2,500	Warren sells goods to customer Adam on 30 days credit terms
3	6 March	2,000	Warren pays by bank transfer part of the amount outstanding on the account of supplier Gary
4	7 March	1,800	Warren pays the business rent from his personal bank account
5	10 March	27,930	Warren receives payment from customer Mercy in full settlement of the amount outstanding
6	15 March	1,500	Warren purchases goods from supplier Bran on 30 days credit terms
7	17 March	11,000	Warren sells goods to customer Mercy on 30 days credit terms
8	18 March	500	Warren buys a laptop computer for use in the business paying from the business bank account
9	25 March	2,780	Warren pays by bank transfer the full amount outstanding on the account of supplier Wendela
10	30 March	2,000	Warren pays supplier Bran in part settlement of amounts outstanding

Required:

e.What do you notice about Warrens management of receivables and payables? What advice would you give him regarding his receivables? What question might you ask him in respect of payables? (The limit for your answer to (e) is 150 words.)