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Navajo Company's year-end financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following

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Navajo Company's year-end financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Year 1 ending inventory is understated by $62,000 and Year 2 ending inventory is overstated by $32.000

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