Recording Scrap. Campton Metal Fabricators Inc. accumulates fairly large quantities of metal shavings and trimmings from the products it manufactures. At least once a month, the scrap metal is sold to a local smelter for reprocessing. This month’s scrap sales on account total $1,800. LO6 Required: Give the appropriate general journal entry to record the sale of the scrap for each of the following alternatives:

(1) The scrap sales are viewed as additional revenue.

(2) The scrap sales are viewed as a reduction of the cost of goods sold during the period.

(3) The scrap sales are viewed as a reduction of factory overhead.

(4) The scrap sales are traceable to individual jobs and are viewed as a reduction in the cost of materials used on the jobs.