Please show work and an explanation for how you got there.

7. The auditors have sampled 50 accounts from a population of 1,000 accounts receivable. The total misstatement in the sample is $275 of overstatement. The book value in the population is $198,000. What is the point estimate for the overstatement error in the population? A. Less than $5,000 B. Greater than $5000 but less than $6,000 C. Greater than $6,000 D. Cannot determine without knowing the adjustment for sampling risk