You are auditing the Accounts Receivable account of ABC Company. The total A/R balance is $2,760,000 and is comprised of 7,320 individual accounts. Assume that you sent confirmations to 100 customers. You are confirming receivables as of 12/31. The total Book value of the 100 accounts tested is $500,000. You identified the following discrepancies on the confirmations.

Book Value	Confirmation Value	Explanation
$5,120	4,820	Pricing error on the sales invoice
$485	385	Customers payment recorded at wrong amount by ABC.
$2,000	1,200	Customer mailed check on 12/29, received by ABC on 1/3.
$1,250	250	Computational error on sales invoice
$3,000	2,400	ABC shipped goods on 12/28, received by customer on 1/4.
$3,975	3,875	Customer returned goods on 12/30. ABC issued credit on 1/3.
$1,850	1,825	Pricing error on sales invoice.
$2,200	2,500	Customer had recorded the purchase at the wrong amount in their accounts payable account
$2,405	0	Pricing error on sales invoice.

Compute the point estimate for the misstatement in A/R using difference estimation.

Compute the point estimate for the misstatement in A/R using ratio estimation.