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 is to debit Cash and credit Sales of Scrap. Therefore, the best choice is C, which reflects the receipt of cash for the sale of scrap. Choices A and D are incorrect because they only credit Sales of Scrap and do not reflect the receipt of cash. Choice B is incorrect because it reflects the removal of manufacturing overhead, which does not accurately reflect the nature of the transaction.

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