1. Sample Evaluations and Conclusions:

In planning a sample for A/R, you use the following information:

	Risk of Incorrect Acceptance	Population Size	Tolerable Misstatement	Expected Misstatement	Actual Sample Size
*	5%	$2,000,000	$100,000	$10,000	75

Confirmations were sent out and the following differences were noted:

Customer Number	Amount per Books	Amount per Customer	Reason
13062	$ 36,321	$ 18,161	Billed twice for the same order.
13672	$ 986	$ -	Customer sent payment on 12/27. Payment was received on 1/4. Fiscal year-end is 12/31.
13235	$ 109	$ 82	Billed for wrong model.
13785	$ 2,483	$ 2,257	Failed to give appropriate discount.

Using the above information, give the following amounts:

Projected misstatement
Upper limit on misstatement
Allowance for sample risk

Show all your work!!

1. Based on your evaluation in part b., are accounts receivables materially misstated? Why or why not?