Bama's accounts receivable were recorded at $600,000. Assume that the auditor determined a sample size of 20 customer accounts and prepared confirmations to be addressed to those customers. One misstatement was determined; an account recorded at $10,000 was confirmed to have a balance of $5,000. Show Work

37) What is the appropriate sampling interval?

A) $60.

B) $250.

C) $500.

D) $30,000.

38) What is the projected misstatement?

A) $5,000.

B) $10,000.

C) $15,000.

D) $30,000.

39) Using an incremental confidence factor of 1.58 (corresponding to the risk of incorrect acceptance of 10 percent), what is the incremental allowance for sampling risk?

A) $5,000.

B) $7,900.

C) $8,700.

D) $23,700.