The following information is provided for the audit of Vial-tech. Performance materiality is twice the amount of materiality. There are no other misstatements other than those indicated.
Estimated
Account Amount Performance Misstatements
Materiality Overstating Income
Accounts receivable 1,000,000 40,000 45,000
Inventory 2,500,000 60,000 10,000
Fixed assets 2,000,000 10,000 5,000
All other accounts (net) 1,500,000 40.000 5,000
Net assets 7,000,000 150,000

Amount includes projected misstatement and allowance for sampling risk: In testing accounts receivable, the auditor tested $200,000 of receivables and found $5,000 of misstatements. The direct projected misstatement in accounts receivable excluding sampling risk is:

O $5,000
O $20,000
O $25,000
O $45,000
O Insufficient information to determine.