4. Complete the audit of the accounts receivables: a. Calculate the sample size for A/R confirmation by following steps in WP 25-2. b. Assume that you received answers for all of the confirmations and only one of them indicated that the balance is wrong. The balance recorded is $598,000, but the correct amount is $589,000. Prepare an adjusting entry on WP 25-5. c. Complete the A/R lead sheet WP 25-1, and complete the conclusions box by stating whether this account is fairly stated or not. (Ignore the allowance for doubtful accounts).

Earnings Per Share Basic - Excluding Extra Items \& Disc Op Earnings Per Share Basic - Including Extra Items \& Disc Op Earnings Per Share Diluted- Excluding Extra Items \& Disc Op Earnings Per Share Diluted - Including Extra Items \& Disc Op EPS Basic from Operations EPS Diluted from Ops Dividends Per Share Com Shares for Basic EPS Com Shares for Diluted EPS \begin{tabular}{|r|r|r|r|} \hline 5,91 & 1,65 & 2,38 & 2,92 \\ \hline \end{tabular} XYZ Corporation ANNUAL BALANCE SHEET (\$ thousands) ASSETS \begin{tabular}{|l|l|l|l|} \hline 31/12/2020 & 31/12/2019 & 31/12/2018 & 21/31/2017 \\ \hline \end{tabular} Cash \& Equivalents Net Receivables Inventories Prepaid Expenses Other Current Assets Total Current Assets Gross Plant Property \& Equipment Accumulated Depreciation Net Plant Property \& Equipment \begin{tabular}{|r|r|r|} \hline 24991 & 29514 \\ \hline 26388 & 25606 \\ \hline 13764 & 13642 \\ \hline 0 & 0 \\ \hline \end{tabular} \begin{tabular}{|r|r|r|} \hline 30240 & 28096 \\ \hline 22813 & 14439 \\ \hline 14039 & 14714 \\ \hline 0 & 0 \\ \hline \end{tabular} westments at Equity Other Investments Intangibles Deferred Charges 12864 14908 \begin{tabular}{|r|r|r} \hline 14409 & 12747 \\ \hline 81501 & 69996 \\ \hline 36679 & 31662 \\ \hline \end{tabular} Other Assets TOTAL ASSETS 31464194520 83670 12349 9275 36679 7429 316625817258456883695487820 LIABILITIES Long Term Debt Due In One Year Notes Payable Accounts Payable Taxes Payable Accrued Expenses Other Current Liabilities Total Current Liabilities Long Term Debt Deferred Taxes Investment Tax Credit Other Liabilities TOTAL LIABILITES Redeemable Noncontrolling Int. EQUITY Preferred Stock - Redeemable Preferred Stock - Nonredeemable \begin{tabular}{|r|r|} \hline 8500 & 8350 \\ \hline 5947 & 16006 \\ \hline 0 & 6410 \\ \hline 31464 & 0 \\ \hline \end{tabular} \begin{tabular}{|r|r|} \hline & \\ \hline 29250 & 25845 \\ \hline 8094 & 6883 \\ \hline 14354 & 6954 \\ \hline 7228 & 8782 \\ \hline 0 & 0 \\ \hline 25917 & 30962 \\ \hline & \\ \hline 166344 & 149422 \\ \hline \end{tabular} Total Preferred Stock Common Stock Capital Surplus Retained Earnings Less: Treasury Stock XYZ Corp. Accounts Receivable Lead sheet Conclusions: The accounts receivable account is ????? (fairly on NOT fairly stated) Calculation of Sample Size Ource: vata Irom AICPA Audit Sampling Audit Guide, March 1, 2012 (www.aicpa.org). Preliminary materiality Judgment Earnings Per Share Basic - Excluding Extra Items \& Disc Op Earnings Per Share Basic - Including Extra Items \& Disc Op Earnings Per Share Diluted- Excluding Extra Items \& Disc Op Earnings Per Share Diluted - Including Extra Items \& Disc Op EPS Basic from Operations EPS Diluted from Ops Dividends Per Share Com Shares for Basic EPS Com Shares for Diluted EPS \begin{tabular}{|r|r|r|r|} \hline 5,91 & 1,65 & 2,38 & 2,92 \\ \hline \end{tabular} XYZ Corporation ANNUAL BALANCE SHEET (\$ thousands) ASSETS \begin{tabular}{|l|l|l|l|} \hline 31/12/2020 & 31/12/2019 & 31/12/2018 & 21/31/2017 \\ \hline \end{tabular} Cash \& Equivalents Net Receivables Inventories Prepaid Expenses Other Current Assets Total Current Assets Gross Plant Property \& Equipment Accumulated Depreciation Net Plant Property \& Equipment \begin{tabular}{|r|r|r|} \hline 24991 & 29514 \\ \hline 26388 & 25606 \\ \hline 13764 & 13642 \\ \hline 0 & 0 \\ \hline \end{tabular} \begin{tabular}{|r|r|r|} \hline 30240 & 28096 \\ \hline 22813 & 14439 \\ \hline 14039 & 14714 \\ \hline 0 & 0 \\ \hline \end{tabular} westments at Equity Other Investments Intangibles Deferred Charges 12864 14908 \begin{tabular}{|r|r|r} \hline 14409 & 12747 \\ \hline 81501 & 69996 \\ \hline 36679 & 31662 \\ \hline \end{tabular} Other Assets TOTAL ASSETS 31464194520 83670 12349 9275 36679 7429 316625817258456883695487820 LIABILITIES Long Term Debt Due In One Year Notes Payable Accounts Payable Taxes Payable Accrued Expenses Other Current Liabilities Total Current Liabilities Long Term Debt Deferred Taxes Investment Tax Credit Other Liabilities TOTAL LIABILITES Redeemable Noncontrolling Int. EQUITY Preferred Stock - Redeemable Preferred Stock - Nonredeemable \begin{tabular}{|r|r|} \hline 8500 & 8350 \\ \hline 5947 & 16006 \\ \hline 0 & 6410 \\ \hline 31464 & 0 \\ \hline \end{tabular} \begin{tabular}{|r|r|} \hline & \\ \hline 29250 & 25845 \\ \hline 8094 & 6883 \\ \hline 14354 & 6954 \\ \hline 7228 & 8782 \\ \hline 0 & 0 \\ \hline 25917 & 30962 \\ \hline & \\ \hline 166344 & 149422 \\ \hline \end{tabular} Total Preferred Stock Common Stock Capital Surplus Retained Earnings Less: Treasury Stock XYZ Corp. Accounts Receivable Lead sheet Conclusions: The accounts receivable account is ????? (fairly on NOT fairly stated) Calculation of Sample Size Ource: vata Irom AICPA Audit Sampling Audit Guide, March 1, 2012 (www.aicpa.org). Preliminary materiality Judgment