REQUIRED 1. Identify the liability from the information for each part. 2. Discuss how the liability must be recognised and measured. 3. Provide the journal entries for each part for the year ended 30 April 2023. Please note: Ignore any VAT or income tax implications. Journal narrations are not required. Round all amounts to the nearest Rand. Show all the necessary calculations as part of your answer 4. Present and disclose the liability as identified in each part in the financial statements for the year ended 30 April 2023. PART B During the year, Khoza Bazaar Ltd (KB) purchased Primo drink products from a Brazilian supplier for resale at its resort. However, KB was unaware that the Brazilian supplier supplied fake Primo drink products which had harmful ingredients. This resulted in some of KBs customers getting sick while others were hospitalised. The news initially broke on 8 February 2023 when Yorisha Hugo was hospitalised. Thereafter, 11 other customers came forward alleging that they became ill allegedly due to the consumption of the fake Primo drink products. Yorisha Hugo and the additional 11 customers (i.e. 12 customers) lodged a joint legal lawsuit against KB on 15 February 2023. KB engaged their lawyers immediately. The lawyers completed their investigations on 22 March 2023. The lawyers believed it is highly probable that these customers would be successful in their claim. The lawyers also envisaged additional customers who may be affected by the fake Primo drink products would lodge additional legal lawsuits. As a result, KBs lawyers suggested that the company offer an outof-court settlement to these customers to prevent any further negative publicity. On 31 March 2023, there were legal lawsuits from three additional customers which the lawyers believed were valid claims. Therefore, at the end of the financial year, the lawyers concluded that there were 15 valid legal claims against KB from the consumption of the fake Primo drink. Following a detailed calculation process, the lawyers estimated that KB offer a reasonable amount of R50 000 per customer as an out-of-court settlement which is favourable to the customers and is likely to be accepted by them. The lawyers issued an invoice of R160 000 on 15 April 2023 for the work they had performed for KB Ltd up to 31 March 2023