Journal entries for salvage value of spoilage The machining process center identified 2,000 spoiled units in the inspection process at the end of production in the process center. The spoiled units cost $7.75 each. Machining activities are very difficult requiring skill and concentra- tion by employees. Any spoilage that occurs in this process center is considered normal since some employee error and random errors are bound to occur. Another company has agreed to buy the spoiled units for $4.20 each.

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REQUIRED Prepare any necessary journal entries associated with the spoiled units.