Question: In the current year, a company discovered errors in previously reported nancial statements that overstated ending inventory on December 3 1 of the prior year

In the current year, a company discovered errors in previously reported nancial statements that overstated ending inventory on December 31 of the prior year by $10,000, and overstated ending inventory on December 31 of two years prior by $15,000. Prepare the correcting entry required on January 1 of the current year, ignoring income taxes.

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