Do you agree with the statement? Briefly discuss. (Please include example) (4 marks) (b)Case 1 - Ahmad Sdn Bhd sells a box of 10 special pens at a 'best buy' price of RM100 with no warranty. However, Ahmad Sdn Bhd has a policy of "goods can be refunded in 2 days after purchased date" if the goods sold are not according to the specification. The policy is printed on each of its receipt. Ahmad Sdn Bhd net sales is RM30,000 for the current fiscal year and its goods refund is estimated at 1% of net sales. Case 2 -AutoCab Services operates a rental car services in Selangor. Under a new legislation, all rental cars must have not only seat belts for the front seats but also for the back seats by 31st December, 2020. Otherwise, the business will face estimated penalties of RM5,000. As at 31st December, 2020, its net services fees earned is RM350,000 for the current fiscal year. However, AutoCab Services has not installed the seat belts for the back seats for all its rental cars as at 31st December, 2020. The seat belts installation costs is estimated at RM40,000. Case 3 -Hatihati berhad operates its plantation business overseas which has no legislation on open burning. Hatihati Berhad and Kerashati Company that operate in the same area, accidentally involved in open burning that causes pollution to the environment in a foreign country. Hatihati Berhad contributed 20% of the occurrence of the pollution. The cost to clean the pollution is estimated at RM2 million. Hatihati Berhad is well known for its environmental friendly policy for the past 10 years in its business operations. Required : i) In each case, briefly explain (with reasons), whether provision should be recognized. State specifically what the provision is for, if any (eg. Provision for warranty). ii.) Prepare the necessary journal entries for each case above (i) that recognizes provision. (12marks) (c) In May 2020, Azim Sdn Bhd relocated an employee, Samir, from Azim Sdn Bhd's head office to an office in another state. As at 30 June 2020, the end of Azim Sdn Bhd's financial reporting period, the relocation costs were: RM Costs for shipping goods 3,000 Airfare 6,000 Temporary accommodation costs- May and June 8,000 Temporary accommodation costs - July and August 9,000 Reimbursement for lease break costs -paid in July, 2,000 lease was terminated in May Reimbursement for additional cost-of-living 12,000 for the period 15 May 2020-15 May 2021 Required: (i)Determine the amount of provision for relocation costs for financial year ended 30 June 2020. Assume that the effect of discounting is immaterial. (ii) Prepare journal entry for the provision. (9 marks)