Need help analyzing and recommending on each issue, the company is reporting under IFRS standards.

QEM has a policy of refunding purchases by dissatisfied customers, as long as it is within two years from the date of purchase. This refund policy is not documented, but QEM has made a practice of doing so in the past. During the year, QEM's sales totalled $35 million. From experience, the company has determined the following probabilities for returns: there is a 25% probability that returns will represent 6% of total sales, 55% probability that they will represent 4% of total sales, and 20% probability that they will represent 2% of total sales. During the year, there were returns on current year's sales of $1.1 million, on which refunds were made. QEM is being sued by a former employee. The non-manager employee contends that not enough severance was paid when he was let go in June 2024. The ex-employee's lawyers are asking for a severance payment of two weeks' pay for each year worked, which in this case was 25 years. QEM agreed to pay the employee severance of $30,000 when he was asked to leave the company. This $30,000 has already been accrued in the accounting records. The case is still being disputed and will go to arbitration early in March 2025. QEM's lawyers believe that the probabilities of settlements for additional amounts (over and above the $30,000 ) are as follows: 25% probability of settling at $20,000,60% probability of settling at $28,000, and 15% probability of settling at $30,000