The following table shows the balance of an entity’s trade receivables for each of the past four years.

As the table indicates, the trade receivables have increased in absolute value each year. Discuss why entities are required to disclose the amounts receivable for trade receivables separately from the amounts receivable from other debtors. To assess the reasonableness of the increase in the trade receivables, list other financial item(s) trends that would be useful to investigate.

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Trade receivables Year 1 $60 000 Year 2 $70 000 Year 3 $105 000 Year 4 $120 000