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1. A company expensed the acquisition of a $100,000 parcel of land three years ago....

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Accounting

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1. A company expensed the acquisition of a $100,000 parcel of land three years ago. What SFP balances are incorrect, ignoring income tax? When would this situation self-correct? 2. An internal auditor has discovered that in the previous year, her company accidentally applied the estimation technique for doubtful accounts "upside down," assigning the greatest risk of default to the newest accounts recelvable and the lowest risk of default to the oldest accounts. This resulted in a very large charge of $5million for doubtful accounts in that year instead of the $1.5 million that a proper estimate would have yielded. In the current year, the technique was applled correctly and the appropriate adjustment was made to the allowance account. What action should the company take, if any, to correct this estimation error

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