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Speedy delivery service recently hired a new accountant who discovered that the prior accountant had erroneously capitalized on routine repair and maintenance costs on delivery
Speedy delivery service recently hired a new accountant who discovered that the prior accountant had erroneously capitalized on routine repair and maintenance costs on delivery trucks. The costs were added to the overall trucks book values and depreciated over time. How should Speedy have recorded routine maintenance and repair costs? In your answer, provide a sample journal entry to show how costs should have been recorded.
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