Assume that you are now performing substantive tests on receivables and you want to perform account receivable confirmations. The client's recorded book value is $6,575,000 made up of 2,120 customers. You have established a tolerable misstatement of $300,000 for accounts receivable. You have selected 230 accounts worth a total of $685,000 to confirm and after sending out the confirmations, four are returned showing the following overstatements. Assume that the remaining receivables were confirmed with no exceptions. 2a. What is the sample misstatement? 2 b. What is the projected misstatement using the ratio estimation method? 2.c What do you conclude about the fairness of the accounts receivable account? 2d. Using the difference estimation method, calculate your projected misstatement 2e. What do you conclude about the fairness of the accounts receivable account? Assume that you are now performing substantive tests on receivables and you want to perform account receivable confirmations. The client's recorded book value is $6,575,000 made up of 2,120 customers. You have established a tolerable misstatement of $300,000 for accounts receivable. You have selected 230 accounts worth a total of $685,000 to confirm and after sending out the confirmations, four are returned showing the following overstatements. Assume that the remaining receivables were confirmed with no exceptions. 2a. What is the sample misstatement? 2 b. What is the projected misstatement using the ratio estimation method? 2.c What do you conclude about the fairness of the accounts receivable account? 2d. Using the difference estimation method, calculate your projected misstatement 2e. What do you conclude about the fairness of the accounts receivable account