You are evaluating the results of a nonstatistical sample of 85 accounts receivable confirmations for the

Bohrer Company. Information on the sample and population are included below. Tolerable misstatement for accounts receivable confirmation sampling is $100,000.

The confirmation responses were received without exception, other than the following items:

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Part 1

Requirement a. Evaluate each of the confirmation exceptions to determine whether they represent misstatements.

Begin by calculating the amount of the misstatement, if any, for each account that was received with differences between the recorded value and confirmed response. Then calculate the total misstatements and select what type of misstatement occured for each misstatement. (If there is no misstatement, enter a "0" in the "Misstatement" column. Enter a description for each account listed.)

Acct.	Recorded	Confirmation
No.	Value	Response	Misstatement	Description
147	$24,692	$22,486	$2,206	Pricing error
228	183,219	157,216	26,003	Cutoff error
278	7,546	5,546	0	Timing difference
497	15,319	0	0	Timing difference
564	8,397	7,858	539	Error in quantity shipped
653	32,687	19,328	13,359	Cutoff error
830	5,286	0	5,286	Cutoff error
Total misstatement		$47,393

Part 2

Requirement b. Estimate the total amount of misstatement in the accounts receivable population. Ignore sampling risk in the calculation.

Complete the table below to determine the total projected misstatement in the accounts receivable population. (Do not round interim calculations. Round your final answers to the nearest whole dollar.)

	Sample	Sample	Book	Projected
	Value	Misstatements	Value	Misstatement
Stratum 1
Stratum 2
Stratum 3
Totals