The audit of M PTE LTD, a manufacturer of bicycle racks and golf carts, for 2020 is nearing completion. You are the auditor on this audit and are responsible for conducting the final review and completion activities. The company ships most of its products to distributors and retailers throughout Indonesia. The Board of Directors of M PTE LTD signed the audited financial report on March 15, 2021. The Board of Directors submitted the financial report to the shareholders on March 25, 2021. The annual general meeting of shareholders that will approve the financial statements will be on April 30, 2021. Indicate how the following events should be reflected in the financial statements as at 31 December 2020 and describe the audit procedures you will perform to verify them:

a. Customers with outstanding receivables of USD 250 million will be liquidated on January 23, 2021. (5%)

b. A warehouse fire broke out on February 18, 2021, destroying $500 million worth of inventory. While investigating this, the auditors discovered an error in the allocation of overhead costs to inventory, resulting in another inventory being found to be overstated by USD 750 million. (5%)

c. M PTE LTD was sued by a customer on March 16, 2021 for damages caused by a defective product. (5%)

d. M PTE LTD sold its former head office on April 7, 2021 for a profit of USD 2 billion. (5%)