s production manager, David noticed that several recent production runs generated a decent-sized collection esignated scrap bin. He looks at current prices for this scrap and recognizes the market price is relatively high f ow, so he makes plans to sell it. He estimates that there are 45 pounds of scrap available to be sold. The current Dund for this particular scrap material.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Answer complete question with working,,,,,,answer in text form please (without image), Note: .Every entry should have narration please
As production manager, David noticed that several recent production runs generated a decent-sized collection of scrap pieces in the
designated scrap bin. He looks at current prices for this scrap and recognizes the market price is relatively high for this material right
now, so he makes plans to sell it. He estimates that there are 45 pounds of scrap available to be sold. The current sales price is $12 per
pound for this particular scrap material.
Assume David uses the sales method to account for scrap. Record the journal entry for the sale of all the scrap for cash. (Credit
account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for
the account titles and enter O for the amounts. List debit entry before credit entry.)
Account Titles and Explanation
Cash
Sales
Debit
Account Titles and Explanation
540
Debit
Credit
Assume David uses the production method to account for scrap. Record the journal entry for the sale of all the scrap for cash.
(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No
Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.)
540
Credit
Transcribed Image Text:As production manager, David noticed that several recent production runs generated a decent-sized collection of scrap pieces in the designated scrap bin. He looks at current prices for this scrap and recognizes the market price is relatively high for this material right now, so he makes plans to sell it. He estimates that there are 45 pounds of scrap available to be sold. The current sales price is $12 per pound for this particular scrap material. Assume David uses the sales method to account for scrap. Record the journal entry for the sale of all the scrap for cash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Cash Sales Debit Account Titles and Explanation 540 Debit Credit Assume David uses the production method to account for scrap. Record the journal entry for the sale of all the scrap for cash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) 540 Credit
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