Assume the amount of scrap is material and the scrap is sold immediately after it is produced.If the scrap attributable to a specific job is sold on account, the journal entry is

Question

Quizplus · Accepted Answer

If scrap attributable to a specific job is sold on account, the journal entry would be to debit Accounts Receivable (asset) and credit Sales (revenue). Option C has a debit to Accounts Receivable and a credit to Sales.

Assume the Amount of Scrap Is Material and the Scrap