Assume that you are preparing to confirm accounts receivable at December $31,2025,$ which is one month prior to the fiscal year$-$end of January $31,2026.$ The book value of gross accounts receivable is $$71,622,804.$ Complete the following requirements related to the confirmation of receivables for Cloud $9$ based on previous work and the following information.

Required:

The audit team sets tolerable misstatement at $$3,000,000,$ expected misstatement at $$1,750,000,$ and risk of incorrect acceptance at $37\%.$ Independent of part a$,$ you use a sample size of $73$ confirmations, and the sampling interval is $$981,134.$ You may assume that except for the following, you received confirmations from customers that showed no exceptions. Two confirmations were returned in which customers noted exceptions. After performing follow$-$up procedures, you determine that two items are misstatements as follows.

Customer Number $....$Book Value $($BV$)....$Audit Value $($AV$)$

$00030$ $$130,500$ $$112,500$

$2128775,50074,745$

$1.$ Calculate the upper misstatement limit$.$ You may use the following template to guide the calculations:

$2.$ Draw a conclusion about whether the existence assertion for accounts receivable is presented fairly at December $31,2025.$