Ramona's Clothing is a retail store specializing in women's clothing. The store has established a liberal return policy for the holiday season in order to encourage gift purchases. Any item purchased during November and December may be returned through January 31 , with a receipt, for cash or exchange. if the customer does not have a recelpt, cash will still be refunded for any itom under $75. If the item is more than $75, a check is mailed to the customec: Whenever an item is returned, o store clerk completes a roturn slip, which the custorner signs. The return slip is placed in a special box, The store manoger visits the retum counter approximately once every two hours to authorize the return slips. Clerks are instructed to place the returned merchandise on the proper rack on the selling floor as soon as possible. This year, returns at Ramona's have resched an al-time high. There are a large number of returns under 575 without receipts. a. How can sales clerks employed at Remona's Clothing use the store's return policy to steai money from the cash register? b. What internol control weaknesses do you soe in the retum policy that moke cash thefts easier? c. Would issuing a store credit in place of a cash refund for all merchandise returned without a receipt reduce the possibility of theit?? Classify the following as either advantages or disadvantages of issuing a store credic in place of cash. A clerk could only issue a phony store credic rather than teking money from the cash register, The store would lose less revenive if customess had to choose other store merchandise instead of getting a cash refund. Issuing only a store credit for returns without a receipt is a stricter return policy that may affect gin-givers' purchase decisions. Sales clerks will need to be trained to apply the new policy and write up a store credit. They wall also need to bo trained to handie the redemption of the store credit on future merchandise purchases. d. Assume that Ramono's Clothing is committed to the current poicy of issuing cash refunds without a receipt. Are there any chenger that ceuld be made in the store's procedures regarding custemer refunds in order that would improve internal control