James Duffney, CPA, has randomly selected and audited a sample of 100 of Will-Marts accounts receivable. Will-Mart has 6,130 accounts receivable accounts with a total book value of $6,000,000. Duffney has determined that the accounts tolerable misstatement is $500,000. His sample results are as follows:

Average audited value $964

Average book value 972

Required:

a. Calculate the accounts receivable estimated audited value and project misstatement using the mean-per-unit method

Estimated Audited:

Projected Misstatement: (and whether it is an under or an over statement)

b. Calculate the accounts receivable estimated audited value and project misstatement using the ratio method

Estimated Audited:

Projected Misstatement: (and whether it is an under or an over statement)

c Calculate the accounts receivable estimated audited value and projected misstatement using the difference method. (Input all amounts as positive values.)

Estimated Audited:

Projected Misstatement: (and whether it is an under or an over statement)