Confused with A-C

After review of the aged receivables trial balance, the audit team has decided the following for substantive testing of accounts receivable: Accounts Receivable Book Value (Per Trial Balance) \$ $70,485,625 Accounts Receivable Tolerable Misstatement: $3,000,000 Use positive confirmations and non-statistical sampling methods Direct Testing Performed direct testing on all balances greater than tolerable misstatement 15 customers met this criterion, which total $50,000,000. Results are documented in the table on the following page. Sample Testing Based on the amount of direct testing performed, you planned to test a random sample of 25 additional customer balances from the sampling population book value. The total book value of these sample selections totaled $6,000,000. Confirmations \#1.\#19: Indicated no issue with the recorded balance in Cloud 9's aged trial balance. - Confirmations #20#25 included the following responses: 20. Customer 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 12,000 items (related to the purchase made on November 30,2022 ). Cloud 9 issued a credit memo for $180,000 on January 7,2023 . The book value of the receivable for Customer No. 00030 at December 31,2022 , was $900,000. 21. 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 29,2023 22 Customer No 00651 disputed receivables in the amount of $250,750, as it had been paid on December 30,2022 The check from Customer . 00651 was received and deposited by Cloud 9 on January 3, 2023. The book value of the receivable for Customer No. 00651 at December 31,2022 , was $250,750. 23. Customer No. 00850 disputed the balance on the confirmation of $35,700 in its entrety. Further investigation showed that the balance was charged to the wrong custorner. Goods were shipped to Customer No. 00580. On January 3,2023 , the error was discovered. A credit memo was issued to Customer , 00850 and an invoice was sent to Customer No. 00580 , which was paid in full on January 27, 2023. 24. No response was received from Customer No 10141 Goods in the amount of $944232 were shipped on November 1, 2022. Addtional goods in the amount of $131,824 wete shipped on Decenter 12, 2022 The recenable balance was $1,076,056 at December 31,2022 A revien of the cash recepts joumal showed that a check for $944,232 was deposted on January 24, 2023. Ancther check for $131,824 sas recelved on Fetruary 1 . 2023 25. Customor , 21287 disputod rocoivablos in the amount of $755 daining that if did not rocsive a promisod 18 , discount associated with the first shipment to a new customec. The took value of the receivables for Customer No 21287 at December 31,2022 was $75,500. The customer subsequently paid $74,745 on vanuary 29,2023 , and Cloud 8 issued a credit meno in the amount of $755 REQUIREMENTS (A-C) A. Using the table below, determine the amount of misstatement (f applicable) for Sample Tosting confimations $20 H25 (put 0 if you do not belove there is a misstalomont related to the confimation). B. Based on the results of direst and sample testing, what is the estimatedipro,ectec mastatemant in acoounts recervable? C. Is accourts receivable materialify mistated? Explain your answer using concepts covered trroughout ACCI 543