I have seen this occur. Our descriptions are very similar.
Patron A checks an item out until it enters Lost status.
Patron A returns the "lost" item, and overdue fines are reinstated.
Some time later, Patron B checks out the item.
The item enters Lost status again.
Patron A pays their overdue fines. Item status is updated to Lost and Paid.
I have seen this occur. Our descriptions are very similar.
Patron A checks an item out until it enters Lost status.
Patron A returns the "lost" item, and overdue fines are reinstated.
Some time later, Patron B checks out the item.
The item enters Lost status again.
Patron A pays their overdue fines. Item status is updated to Lost and Paid.