Rachel Robertson wishes to use mean-per-unit sampling to evaluate the reasonableness of the book value of the accounts receivable of Smith, Inc. Smith has 9,500 receivable accounts with a total book value of $1,540,000. Robertson estimates the population's standard deviation to be equal to $26. After examining the overall audit plan, the auditors believe that the account's tolerable misstatement is $68,000, and that a risk of incorrect rejection of 5 percent and a risk of incorrect acceptance of 10 percent are appropriate. Use Figure 9.8. (incorrect acceptable coefficient - 1.28, incorrect rejection 1.96)

Assuming the following results:

Book value of items in sample = $162

Average audited value of items in sample = $155

Standard deviation of sample = $32

3) Calculate the adjusted allowance for sampling risk. (please be detailed, I keep getting 34,996, which is apparently wrong.)