Need answers exercise 7.4

D. J. Fletcher, a trusted employee of Bluestem Products, found himself in personal financial dif s ficulties and decided to "borrow" $3,000 from the company and to conceal his theft. As a first step, Fletcher removed $3,000 in currency from the cash register. This amount re pre sented the bulk of the cash received in over-the-counter sales during the three business days since the last bank deposit. Fletcher then removed a $3,000 check from the day's incoming mail; this checi had been mailed in by a customer, Michael Adams, in full payment of his account. Fletcher made no journal entry to record the $3,000 collection from Adams, but deposited the check in Bluestem Products's bank account in place of the $3,000 over-the-counter cash receipts he had stolen. In order to keep Adams from protesting when his month-end statement reached him, Fletcher made a journal entry debiting Sales Returns and Allowances and crediting Accounts Receivable- Michael Adams. Fletcher posted this entry to the two general ledger accountsfected and t Did these actions by Fletcher cause the general ledger to be out of balance or the subsidin Assume that Bluestem Products prepares financial statements at the end of the month wille Adams's account in the subsidiary ledger for accounts receivable. a. ledger to disagree with the control account? Explain. b. be i discovering the theft. Would any items in the balance sheet or the income statemeit error? Explain. Several weaknesses in internal control apparently exist in Bluestem Products. In specific changes needed to strengthen internal control over cash receipts. c. Indicate thee