Internal Controls Ramona's Clothing is a retail store specializing in women's clothing. The store has established a liberal return policy for the holidsy season in order to encourage gift purchases. Any item purchased during November and December may be returned through January $31,$ with a receipt, for cash or exchange. tf the customer does not have a recelpt, cash Wil still be refunded for any item under $\backslash (\backslash$$ $75\backslash ).$ If the itern is more than $\backslash (\backslash$$ $75\backslash ),$ a check is malled to the customer. Whenever an item is retumed, a store clerk cormpletes a return slip, which the customer signs. The retum slip is placed in a special box. The store manager visits the retum counter approximately once every two hours to authorize the return slips, Clerks are instructed to place the returned merchandise on the proper rack on the selling floor as soon as possible. This yeac, returns at Ramona's Clothing have reached an all$-$time high. There are a large number of returns under s$75$ without receipts. a$.$ How can salesclerks employed at Ramona's clothing use the store's return policy to stenl money from the cash register? b$.$ What internal control weaknesses do you see in the return policy that make cash thefs easier? c$.$ Would issuing a store credit in place of a cash refund for all merchandise returned wathout a receipt reduce the possibility of then? Ciassify the following as either advantages or disadvantages of issuing a store credit in place of cath A clerk could only iswe a phony store credit rather than taking money from the cash registec. The store would lose less revenue if customers had to choose other store merchendise instesd of gatting a cash refund.c$.$ Would issuing a store credit in place of a cash refund for all merchandise returned without a receipt reduce the possibility of theft? Classify the following as either advantages or disadvantages of issuing a store credit in place of cash: A clerk could only issue a phony store credit rather than taking money from the cash register. The store would lose less revenue if customers had to choose other store merchandise instead of getting o cash refund. Issuing only a store credit for returns without a recelpt is a stricter return policy that may affect gift$-$givers' purchase decisions. Sales clerks will need to be trained to apply the new policy and write up a store credit. They will also need to be trained to handle the redemption of the store credit an future merchandise purchases. d$.$ Assume that Ramona's Clothing is committed to the current policy of issuing cash refunds without a recelpt: Are there any changes that could be made in the store's. procedures regarding customer refunds in order that would improve internal control?