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The 1,000 accounts receivable of Baker Company have a total book value of $30,000 (Average book value = $30). Wendy Duffo, CPA, has selected and audited a sample of 50 accounts with the following mean values:1. Book value of $29.002. Audited value of $29.50.TB MC Qu. 09-20 What is the estimated total audited value...What is the estimated total audited value using mean-per-unit sampling?Multiple ChoiceA) $29,000.B) $29,500.C) $30,500.D) $30,517.

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Answer:

B) $29,500

Explanation:

If we are going to use the mean per unit sampling to estimate the total audited value all we have to do is multiply the total number of accounts by the mean audited value of the sample (50 accounts):

total estimated audited value = 1,000 accounts x $29.50 per account

total estimated audited value = $29,500

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