Question

QUESTION

Question

You have selected 100 sample items from CBA’s accounts receivable population. For this problem only, assume the total population for accounts receivable is $400,000. Also assume the following invoices were selected. This is only a partial list of population items. Begin your selection with a random starting point of $1,240. Use the following format, listing only those you have selected.

Invoice Number            Amount           Cumulative Balance

Requirement

Which invoices would you select? Explain your answer.

Invoice Number          Recorded Amount

2778                              $ 350

2779                               4,460

7280                               670

7812                               1,200

2782                               2,455

2278                               1,234

2784                               900

3785                               2,222

3786                               675

7873                               8,544

4788                               320

4478                               4,000

4790                               1,100

Answer 1

Total account receivable population = $ 400,000

Number of sample items selected = 100

Sample interval = 400,000/100 = $ 4,000

Invoice Number	Recorded Amount	Cumulative Balance
2,778	350	350
2,779	4,460	4,810
7,280	670	5,480
7,812	1,200	6,680
2,782	2,455	9,135
2,278	1,234	10,369
2,784	900	11,269
3,785	2,222	13,491
3,786	675	14,166
7,873	8,544	22,710
4,788	320	23,030
4,478	4,000	27,030
4,790	1,100	28,130

Starting with the point of $ 1240, invoices would be selected at regular interval of $ 4000

So, following invoices (highlighted in yellow) would be selected

Selected invoices: 2779, 2782, 3785, 7873, 4478