Teal Corporation Has 2,000 Accounts Receivable, with a Total Book

question 83

Essay

Teal Corporation has 2,000 accounts receivable, with a total book value of $200,000. Ricardo Ramaro, CPA, has selected and audited a sample of 100 of the accounts with a combined book value of $10,100; the total of the audited values was $11,000. Using the mean-per-unit method, calculate the:
a. Accounts receivable estimated audited value.
b. Projected misstatement.

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Definitions:

Market Rate

The current price or cost of a good, service, or financial asset in the marketplace, determined by supply and demand dynamics.

Par Value

The nominal dollar amount assigned to a security by the issuer.

Semiannual Interest

Interest that is calculated and paid twice a year, often associated with bonds or loans.

Selling Price

The amount of money charged for a product or service, determined by various factors including cost, demand, and market conditions.