The annual audit of the accounting records and draft financial statements of ABC Ltd as at 30 June 2021 revealed the following errors and omissions. (a) Credit notes totaling $40 000 relating to June sales were posted against sales made in July, (4 MARKS) (b) No disclosure has been made about a fire in the warehouse during May that caused damage worth $20 000. The warehouse and its contents are fully insured. (2MARKS) (c) No adjustment to the allowance for doubtful debts has been made to reflect the fact that a major debtor owing $20 000 went into liquidation after the end of the reporting period. Correspondence with the liquidator indicates that the expected payout will be no more than 10c in the dollar. (4 MARKS)