Estimates have high risks of material misstatement because: Estimates are based on judgment. Estimates can only be tested using transactions in the subsequent period. Estimates can only be tested using substantive analytical procedures. Estimates are extensively tested by auditors. When performing cutoff tests for sales and accounts receivable (A/R) at December 31 (year-end), an auditor obtains the following evidence. Which of the four pieces of evidence reveals an overstatement of sales and A/R at December 31? Terms of trade are FOB destination. Goods were shipped on December 31, and the sale was recorded on December 31 . Terms of trade are FOB destination. Goods were shipped on December 31 , and the sale was recorded on January 8. Terms of trade are FOB shipping point. Goods were shipped on December 31 , and the sale was recorded on December 31 . Terms of trade are FOB shipping point. Goods were shipped on January 2, and the sale was recorded on January 4