Indicate how Petersen Ltd should treat the following events in its financial statements for the year ending 30 June 2023. The financial statements were authorised for issue on 10 September 2023. You are not required to draft the financial statement notes.

a. On 15 August 2023, Michael Ltd, a major customer of Petersen Ltd, indicated that it had found an alternative supplier. At this date Michael Ltd owed no amount to Petersen Ltd.

b. On 30 June 2023, Lynch Ltd owed Petersen Ltd $234 900. On 24 July 2023, Petersen Ltd received notice that Lynch Ltd had become insolvent. It had ceased trading in May 2023.

c. On 31 July 2023, a major flood damaged the premises of Petersen Ltd. Inventory amounting to $324 600 was destroyed and repairs to office equipment and buildings will amount to a further $564 000.

d. On 12 August 2023, Petersen Ltd settled a negligence claim lodged by one of its customers for $1 million. The claim arose on 7 March 2023.