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

Question

Quizplus · Accepted Answer

When the amount of scrap is immaterial, the simplest accounting entry when recording scrap sold for cash is to credit the Scrap Revenue account and debit Cash. Thus, Choice C - Cash and Scrap Revenues - is the most appropriate option. Choices A, B, and D are not recommended as they involve inappropriate or unnecessary accounts. The Sales of Scrap and Accounts Receivable accounts are generally reserved for more crucial transactions. Manufacturing Overhead Control, on the other hand, is incorrect since scrap sales are not connected to overhead expenses.

When the Amount of Scrap Is Immaterial,which of the Following