(Scrap; job order costing) Ruthie Architects offers a variety of architectural services for commercial construction clients. For each major job, architectural models of the completed structures are built for client presentations. The company uses a job order cost system. At the completion of a job, the firm sells the architectural models to an arts and crafts retailer if the clients do not want them. Ruthie Architects uses the realized value method of account¬ ing for 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 2006, the model for the Stiles building was sold for $2,500.

a. Using the realized value approach, give the entry7 to record the sale.

b. Independent of your answer to part (a), assume that the sales value of the models is not credited to specific jobs. Give the entry to account for the sale of the Stiles building model.

 LO1.