CY Bhd is a manufacturer of consumer products. During the audit of financial statements for the year ended 31 December 2020, the following events were considered:

1. Inventory costing RM67,000 has been written down to RM50,000 on 31 December 2019. However, the sales proceed received from selling the inventory after the year end was higher than the estimated proceed by RM20,000.

2. Due to an accounting error, the sales figure for the year ended 31 December 2019 was overstated by RM60,000.

3. In January 2021, the company issued a significant guarantee to a related company.

4. In February 2021, the company sued its supplier for late delivery of raw materials in December 2020, claiming compensation of RM120,000. The lawyer advised that CY Bhd will probably win the case.

Required: State, with reasons, whether any adjustments need to be made to the above events. Where adjustment shall be made to the financial statements for the year ended 31 December 2020, suggest the appropriate adjustment. You can assume that all of the events are material in relation to CY Bhds accounts.