The accounts receivable population for Jake's Bookbinding Company follows. This table is the same as Table 17-1

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The accounts receivable population for Jake's Bookbinding Company follows. This table is the same as Table 17-1 on page 560, except that cumulative amounts are included to assist you in completing the problem. The population is smaller than is ordinarily the case for statistical sampling, but an entire population is useful to show how to select PPS samples.

The accounts receivable population for Jake's Bookbinding Compan

Required
a. Select a random PPS sample of 10 items, using computer software.
b. Select a sample of 10 items using systematic PPS sampling using the same concepts discussed in Chapter 15 for systematic sampling. Use a starting point of 1857. Identify the physical units associated with the sample dollars.
c. Which sample items will always be included in the systematic PPS sample regardless of the starting point? Will that also be true of random PPS sampling?
d. Which method is preferable in terms of ease of selection in this case?
e. Why will an auditor useMUS?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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