Long Question Sale/Receivables ( 8 marks) Find below the client prepared listing of accounts receivable (D-1) provided to you to use in your audit of Valley Distributing Company as of December 31, 2020. Valley Distributing Company Accounts Receivable D-1 December 31, 2020 Customer Current- 30 Days 30-60 Days Food Baskets Inc. Luper Drugs Petes Grill Valley Food $ 4,978 1,000 3,690 2,930 $ 14,358 --- $ 870 --- --- $ 870 Total A/R December 31, 2020 $ 15,228 You have mailed confirmations (positive) on each account and received the following replies which are summarized below. Working Paper Customer D-1-1 Food Baskets Inc. We paid the full $4,978 on January 3, 2021. D-1-2 Luper Drugs Paid $870 on November 3, 2020. Enclosed is our cleared cheque endorsed by yourselves November 5, 2020. D-1-4 Petes Grill Never received the goods. D-1-5 Valley Food The goods were not received until January 3, 2021, on FOB destination terms. So we owe nothing as of December 31. REQUIRED: What specific steps would you take as auditor in response to each of the above confirmation replies?