Management estimates the company's allowance for doubtful accounts as $200,000, and the auditors develop an...
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Accounting
Management estimates the company's allowance for doubtful accounts as $200,000, and the auditors develop an estimate that suggests that the amount should be between $230,000 and $250,000, with all points in that interval equally likely.
a. The judgmental misstatement in this situation is:
$40,000.
$30,000.
$0.
$50,000.
b. The factual misstatement in this situation is:
$0.
$30,000.
$40,000.
$50,000.
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