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The fieldwork for the June 30, 2020 audit of Pleasant Corporation ended on August 20, 2020. The financial statements and auditor's report were issued on September 6, 2020. In each of the highly material independent events related to Pleasant Corporation below, indicate the appropriate action for the events and justify your response with reasons.

1. On August 1, 2020, one of Pleasant Corporation's major customer, R&C was declared bankrupt. R&Cs financial condition in the financial year was deteriorating and they owed Pleasant Corporation $400, 000 a large sum of money as of the balance sheet date. The most recent sales had taken place in April 22, 2019, and no cash has been received since that date.
2. On July 20, 2020, Pleasant Corporation sold some of its machinery for its book value.
3. On July 20, 2020, Pleasant Corporation filed a lawsuit for patent infringement action that allegedly took place in early 2019. In the opinion of the legal counsel, there is a danger of a significant loss to the client.