8-41 (Sample misstatements, LO 4) In confirming individual accounts receivable balances, your clients customers reported the exceptions listed below. Required Which of these exemptions should be considered misstatements for evaluation purposes, assuming that misstatements are defined as (a) differences that affect the account malance and (b) differences that affect pretax income? Explain your reasoning in each instance. 1. The wrong trade discount was used. 2. The client charged sales tax to tax- exempt customer. 3. The client failed to record returned merchandise. 4. The invoice contained a clerical error. 5. The payment was posted to the wrong customers account. 6. The client failed to record a sale. 7. The payment was in transit at the conformation date. 8. Freight was charged to the customer when the terms were FOB destination. 9. The customer subtracted a cash discount for a payment made after the discount period. The client decided to give credit for the discount taken