QUESTION FOUR Part A Plympton Food Ltd makes sales primarily on credit basis. Valuation of accounts receivable, therefore, is critical for the company. The com pany exercises a lot of care when reporting the net value of accounts receivable in its annual reports. Additionally, a trusted cashier is assigned the responsibility of recording the collection of cash when the customers make the payment of their outstanding amounts to the cashier. The cashier is also authorised to write off any bad debt when customers default on their payment. The management of the company is happy with the much streamlined cash collection procedure. Plympton Food Ltd's balance sheet at 30 June 2015 reported the following: $ 120,000 Accounts receivable $ 4,000 Less: Allowance for doubtful debts Following transactions/ events occurred during the financial year ending 30 June 2016: On 21 May 2016, the cashier had to write off accounts receivable for the amount of $3,300 due to the inability of a customer to pay the outstanding amount. was previously included in allowance for doubtful debt. The company estimates that the total amount of uncollectable debt amounts to $4,200 at 30 June 2016 amo REQUIRED: (i) Prepare the journal entries to record the above two transactions/events for Plympton Food Ltd during the year ending 30 June 2016. [Narrations are not required] (ii) Identify any internal control weakness in the above situation and discuss the consequences. Part B Terry Williams is the manager Silvan product Ltd, a chemical business. The business has accidentally contaminated a river following the release of dangerous chemicals. The business is legally obliged to pay to decontaminate the river. The accident occurred near the end of the reporting period and it is too early to derive a reliable estimate of the likely future costs involved. Terry Williams, therefore, believes that neither any provision nor any disclosure should be made regarding the accident in the financial statements of Silvan product Ltd for the year. REQUIRED: Do you agree with Terry Williams? Give reasons for your decision by making reference to the generally accepted accounting principles in your