Using statistical sampling to assist in supporting the year$-$end accounts receivable balance, an auditor has accumulated the following data:

$$

Number of Accounts

Book Balance

Balance Determined by the Auditor

Population

$4,000$

$$5,000,000$

$?$

Sample

$200$

$$300,000$

$$250,000$

$$

Using the dollar ratio estimation technique, the auditor$$s estimate of year$-$end accounts receivable balance would be:

Question $16$Answer

a$.$

$$4,000,000$

b$.$

$$6,000,000$

c$.$

$$4,166,667$

d$.$

$$4,750,000$

e$.$

$$6,025,000$