next. You are evaluating audit results for assets in the audit of Aces Manufacturing. You set the preliminary judgment about materiality at $100,000. The account balances, performance materiality, and estimated overstatements in the accounts are shown Click the icon to view the account balances, performance materiality, and estimated overstatements.) Requirements a. Assume you tested inventory amounts totaling $500,000 and found $20,000 in overstatements. Ignoring sampling risk, what is your estimate of the total misstatement in inventory? b. Based on the audit of the assets accounts and ignoring other accounts, are the overall financial statements acceptable? Explain. C. What do you believe the auditor should do in the circumstances? Requirement a. Assume you tested inventory amounts totaling $500,000 and found $20,000 in overstatements. Ignoring sampling risk, what is your estimate of the total misstatement in inventory? (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Account Cash Accounts receivable Inventory Other assets Total Account Balance Performance Materiality Estimate of Total Overstatements $ 115,000 $ 2,875 $ 875 1,000,000 25,000 22,000 2,600,000 52,000 340,000 8,500 1,500 $ 4,055,000 $ 88,375 ?