(Scrap, job order costing) Madison Architects offers a variety of architectural ser¬ vices for its commercial construction clients. For each major job, architectural models of the completed structures are built for use in presentations to clients. The firm tracks all costs using a job order costing system. At the completion of the job, the architectural models can be sold to an arts and crafts retailer. The firm uses the realized value method of accounting for the sale of the models. The sales value of each model is credited to the cost of the specific job for which the model was built. During 1998, the model for the Coulson Building was sold for $2,750.

a. Using the realized value approach, give the entry to record the sale.

b. Independent of your answer to part

a, assume instead that the sales value of the models is not credited to specific jobs. Give the entry to account for the sale of the Coulson Building; model.

LO1