Identifying errors in accounting for materials Ristlott Company is a small manufactur- ing company using a perpetual inventory system. Recently the company hired an accountant who has not worked for a manufacturer before. In his first week, he made the following entries:

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a. Purchases b. Accounts Payable.... To record the purchase of raw materials on open account. Direct Materials Purchases.. Issued $9,000 of compound used to lubricate machinery to the maintenance department. C. Inventory Control Scrap Revenue To record the sale of scrap materials. 89,300 89,300 9,000 9,000 2,300 2,300