The accounting firm of Johnson and Johnson has decided to design a nonstatistical sample to examine the accounts receivable balance of Francisco Fragrances, Inc., at October 31. As of October 31, there were 1,500 accounts receivable accounts with a balance of $5.5 million. The accounts receivable population can be segregated into the following strata Number and Size of Accounts 10 accounts $ 440 accounts > $ 1,050 accounts 5 $ 50,000 5,000 5,000 Book Value of Stratus 750,000 3,000,eee 1,750,000 ook rences Jonathan L. Gren, senior-in-charge of the audit has made the following decisions Based on the results of the tests of controls and risk assessment procedures, a low assessment is made for the risk of material misstatement The desired confidence level is moderate The tolerable misstatement allocated to accounts receivable is $155.000, and the expected misstatement is $55.000 . All the balances greater than $50.000 will be audited Required: a. Using the nonstatistical sampling formula included in the textbook, compute the suggested sample size for this test. Sample Size nces b. Gren confirmed the accounts receivable accounts selected and noted the following results (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Amount of 3.500 Book Value of Stratum $ 750,000 3,000,000 1,750,000 Audit Value of Samole $ 746, 508 896,75e Book Value of Sample $ 750,000 910.000 70, oee Stratum $ 58,00 $ 5.ee 5 5,00 > > Using ratio projection, what is the total projected misstatement? Using ratio projection, what is the total projected misstatement? Since the projected misstatement is significantly that the true misstatement the expected misstatement $55,000. Gren should cond the tolerable misstatement on, what is the total projected misstatement? nisstatement, is significantly that the true misstatement is significanty F e the expected misstatement, $55,000. Gren should conclude that there is an the tolerable misstatement e