What action is required? ignore taxes. describe in word no, Ask an Expert

Accounting

L Company discovered that a three-year insurance premium payment of $240,000 one year ago was debited to insurance expense.

Required:

1. What action is required? Ignore taxes. Describe in word, no journal entry is needed.

2. What action is required if the error is not discovered until 4 years after it occurred? Describe in word, no journal entry is needed.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M950611

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