After discussion of the sample size with Josh Thomas, the audit team sets tolerable misstatement at $3,000,000, expected misstatement at $1,750,000, and risk of incorrect acceptance at 37%. You use a sample size of 73 confirmations. The sampling interval is $981,134. You may assume that except for the following, you received confirmations from customers that showed no exceptions. Determine whether the following conditions represent errors for purposes of your evaluation. Based on your evaluation and the parameters of the sample you designed above, evaluate the result of confirming accounts receivable.

1. Determine the amount of misstatement for each customer listed above.:
2. Determine the upper misstatement limit:
3. Draw a conclusion about whether the existence assertion for accounts receivable is presented fairly at December 31, 2022.:

Customer No. 00030 disputed the price on stock number 11205, which was priced at $75 per item and should have been priced at $60 per item on 1200 items. Cloud 9 issued a credit memo for $18,000 on January 7, 2023. The book value of the receivable for Customer No. 00030 at December 31, 2022, was $130,500.

Customer No. 00158 with a receivable balance of $730,225 on December 31 disputed receivables in the amount of $30,500, as a shipment of shoes was not received until January 2, 2023. Further investigation showed that the customer ordered the goods on December 31, 2022, and they were not counted in inventory when the inventory was taken on that date. The freight carrier came by late in the day and picked up the goods, even though the warehouse was normally shut down for inventory on December 31, 2022. The goods were shipped FOB shipping point. The receivable was paid in full on January 29, 2022.