Problem

H. Brown, CPA, performed a nonstatistical sampling plan to examine the inventory balances...

H. Brown, CPA, performed a nonstatistical sampling plan to examine the inventory balances of Big Company. Brown audited 50 items from a sample and found an audited value of $18,000. The sample had a recorded value of $20,000. If the entire inventory contained 250 items and the total recorded value of the inventory was $250,000, the estimated account balance using nonstatistical estimation and projecting the error based on number of items examined was

A. $196,800.

B. $237,250.

C. $225,000.

D. $300,000.

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