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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

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 Book Value of Stratum
10 accounts > $ 50,000 $ 750,000
440 accounts > $ 5,000 3,000,000
1,050 accounts < $ 5,000 1,750,000
Jonathan L. Gren, senior-in-charge of the audit, has made the following decisions:

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