Ms. Isabella Maria Cortez is a Spanish designer specialising in Ladies' fashion whose business located in Melbourne, Australia. Her label 'PREGUNTARSE' meaning wonder is well known in department stores and fashion boutiques. Her business registered name is The Statement Pty Ltd Isabella on 20 January 2021 secured a business loan for Collins Street Merchant Bank for $1,750,000. The security of the loan was secured by business assets. Isabella decided not to use the loan for the business but used the finance to secure her new apartment in South Yarra. The title of the property was in her name and not of the company, The Statement Pty Ltd. Isabella, a first-class designer has allowed her assistant Peta with no accounting knowledge to complete all financial recording in the financial year 2020-2021. Some financial recording observations were: . . Any sales returns were decreased from gross sales revenue. All freight inwards charges were treated as an operating expense. Any dividends paid to Isabella were treated as expenses by the company. The Statement Pty Ltd adopts a perpetual method of inventory recording but does not maintain inventory subsidiary records. Any bad debts are treated as outflows in the Statement of Cash Flow. Depreciation calculated is the loss of the market value of the non-current assets and recorded as a credit to the non-current assets account. . The company The Statement Pty Ltd' adopts accrual accounting for profit determination which means revenue received is matched against expenses paid with no need to make any adjustments. Required: As the external accountant for the business completing the financial reports for The Statement Pty Ltd for the 2020-2021 year, make recommendations to Ms. Isabella Corteze to amend any incorrect accounting assumptions and recording. Where necessary support those amendments with accounting theory