When the amount of scrap is immaterial, the easiest accounting entry when recording scrap sold for cash is:

Question

Quizplus · Accepted Answer

When the amount of scrap is immaterial, it is recorded as a simple cash sale. Therefore, the easiest accounting entry when recording scrap sold for cash is to debit Cash and credit Sales of Scrap. Option C shows the correct entry, with Cash being debited and Sales of Scrap being credited. Option A is incorrect because it only credits Sales of Scrap account but does not debit Cash account. Option B is incorrect because it only debits Cash account but does not credit Sales of Scrap account. Option D is also incorrect because it involves recording of accounts receivable, which is not applicable in this scenario.

When the Amount of Scrap Is Immaterial, the Easiest Accounting