Given data from testing the year-end Accounts Receivable balance: Number of Book Balance Balance determined accounts by the auditor Population 3,000 $800,000 Sample 320 $64,000 $58.000 Using dolar-ratio estimation, the estimate of the year-end Accounts Receivable is Oa $743,750 Ob. $794,000 Oc $543,750 Od. $720,000 Oe $725,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 9E
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Given data from testing the year-end Accounts Receivable balance
Number of
accounts
Book Balance
Balance determined
by the auditor
Population
3,000
$800,000
Sample
320
$64,000
$58.000
Using dolar-ratio estimation, the estimate of the year-end Accounts Receivable is
O a. $743,750
Ob. $794,000
Oc $543,750
Od. $720,000
Oe $725,000
Transcribed Image Text:Given data from testing the year-end Accounts Receivable balance Number of accounts Book Balance Balance determined by the auditor Population 3,000 $800,000 Sample 320 $64,000 $58.000 Using dolar-ratio estimation, the estimate of the year-end Accounts Receivable is O a. $743,750 Ob. $794,000 Oc $543,750 Od. $720,000 Oe $725,000
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