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Reporting an Inventory Error In the current year, a company discovered errors in previously reported financial statements that overstated ending inventory on December 3 1

Reporting an Inventory Error
In the current year, a company discovered errors in previously reported financial statements that overstated ending inventory on December 31 of the prior year
by $16,000, and overstated ending inventory on December 31 of two years prior by $24,000. Prepare the correcting entry required on January 1 of the current
year, ignoring income taxes.
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