The 2000 accounts receivable of ABC Company have a total book value of $40,000.
ID: 2552004 • Letter: T
Question
The 2000 accounts receivable of ABC Company have a total book value of $40,000. Bob Rotter, CPA, has selected and audited a sample of 100 accounts with a total book value of $1,950. The audited value of the 100 accounts in the sample is $1,875.
43. Using the mean-per-unit estimation technique, Rotter's estimate (to the nearest dollar) of year-end accounts receivable balance would be: A. $37,500 B. $38,462 C. $38,500 D. $41,600
44. Using the ratio estimation technique, Rotter's estimate (to the nearest dollar) of year-end accounts receivable balance would be: A. $37,500 B. $38,462 C. $38,500 D. $41,600
45. Using the difference estimation technique, Rotter's estimate (to the nearest dollar) of year-end accounts receivable balance would be: A. $37,500 B. $38,462 C. $38,500 D. $41,600
Explanation / Answer
1.Using the mean-per-unit estimation technique, Rotter's estimate of year-end accounts receivable balance would be = $37,500
2.Using the ratio estimation technique, Rotter's estimate of year-end accounts receivable balance would be = $38,462
3.Using the difference estimation technique, Rotter's estimate of year-end accounts receivable balance would be =$38,500
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