The 8,000 accounts receivable of Jackson Company have a total book value of $130,000. Trump CPA, has selected and audited a sample of 500 accounts with the following values: (Use to answer the below questions)

1. Sample Book value of $9,500

2. Sample Audited value of $8,700.

Difference Estimation

Projected Misstatement = [ Audit Value-Book Value] X Population Items

[ Sample Items ]

Estimated Audit Value= Book Value of Population (or Strata) + Projected Misstatement

Ratio Method

Estimated Misstatement = BV (of Strata) - Projected AV (of Strata)

Projected Audit Value = [AV of Sample ] X BV of population

[ BV of sample ]

i. What is the estimated total audited value using ratio estimation? (Use information/data above.)

		$119,053.
		$117,200.
		$141,954.
		$142,800.