Some inventory errors are said to be self-correcting in that the error has the opposite financial statement

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Some inventory errors are said to be self-correcting in that the error has the opposite financial statement effect in the period following the error, thereby correcting the original account balance errors. 


Required:

Despite this self-correcting feature, discuss why these errors should not be ignored and describe the steps required to account for the error correction.

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Intermediate Accounting

ISBN: 978-1260481952

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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