Ernie Upshaw is the supervising manager of Sleep Tight Bedding. At the end of the year, the companys accounting manager provides Ernie with the following information, before any adjustment.

Accounts receivable	$	500,000
Estimated percent uncollectible		9	%
Allowance for uncollectible accounts	$	20,000	(debit)
Operating income	$	320,000

In the previous year, Sleep Tight Bedding reported operating income (after adjustment) of $275,000. Ernie knows that its important to report an upward trend in earnings. This is important not only for Ernies compensation and employment, but also for the companys stock price. If investors see a decline in earnings, the stock price could drop significantly, and Ernie owns a large amount of the companys stock. This has caused Ernie many sleepless nights.

How much would total assets and expense be misstated using the 4% amount?