ed The accounting firm of Johnson and Johnson has decided to design a nonstatistical sample to examine the accounts receivable balance of Francisco Fragrances, Inc., at October 31. As of October 31, there were 1,500 accounts receivable accounts with a balance of $5.5 million. The accounts receivable population can be segregated into the following strata: Number and Size of Accounts Book Value of Stratum 10 accounts $50,000 $750,000 440 accounts ok $5,000 3,000,000 ht ences 1,050 accounts < $ 5,000 1,750,000 Jonathan L. Gren, senior-in-charge of the audit, has made the following decisions: Based on the results of the tests of controls and risk assessment procedures, a low assessment is made for the risk of material misstatement. The desired confidence level is moderate. The tolerable misstatement allocated to accounts receivable is $155,000, and the expected misstatement is $55,000. All the balances greater than $50,000 will be audited. Required: a. Using the nonstatistical sampling formula included in the textbook, compute the suggested sample size for this test. Sample Size b. Gren confirmed the accounts receivable accounts selected and noted the following results (Do not round intermediate calculations. Round your answer to the nearest dollar amount.): Stratum Book Value of Book Value Audit Value Amount of Stratum >$50,000 $ 750,000 >$ 5,000 $ 5,000 3,000,000 1,750,000 of Sample $750,000 910,000 70,000 of Sample Overstatement $746,500 $ 3,500 894,750 68,450 15,250 1,550 Using ratio projection, what is the total projected misstatement? Since the projected misstatement, significantly that the true misstatement the expected misstatement, $55,000, Gren should conclude that there is an the tolerable misstatement