Lucas Lopez is auditing ABC Corporations accounts receivable. There are 5000 accounts in all. ABC shows a

Question:

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%.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...