Lucas Lopez is auditing ABC Corporation’s accounts receivable. There are 5000 accounts in all. ABC shows a total book value of $ 2,840,000 for accounts receivable. Lucas takes a simple random sample of 100 of the 5000 accounts and finds that the average amount receivable in the sample is $ 579.23, with a sample standard deviation of $ 81.40. Use this sample information to test the hypothesis that ABC’s stated book value is correct. That is, test the null hypothesis that ABC’s total accounts receivable is $ 2,840,000, no more and no less. Use a significance level of 5%.
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