Assume that you have audited accounts receivable as of 12/31/2020 and are confident that the ending balance should be $7,188,000. Further, you know that the audited balance as of 12/31/2019 was $8,462,000. You also verified cash deposits from customers through a review of the bank account. Based on that review you believe that cash receipts from customers ranges from an amount of $40,000,000 to $41,000,000.

Which amount below would represent an overstatement of revenue for the year ending 12/31/2020, based on the facts above?

1) Not determinable based on the facts above.

2) $41,000,000

3) $38,500,000

4) 39,100,000

5) $39,762,000