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

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The journal entry for selling scrap on account includes a credit to the scrap account and a debit to accounts receivable. Since the scrap is attributable to a specific job, there should also be a debit to the job cost account. The correct journal entry is:
Debit Job Cost account (specific to the job)
Credit Scrap account
Credit Accounts Receivable account. Option C is the only one that shows these three accounts.

Assume the Amount of Scrap Is Material and the Scrap