Recording a sale of scrap. Carey Business Supply manufactures various types of paper forms for use in business. Scrap paper is accumulated and periodically sold. The value of this scrap is quite small. Therefore, the company merely collects the material from the factory floor and stores it until it is sold, at which time an entry is made.

Job 439, for a large quantity of carbon-back forms, was in production during the month of May 19X7.-Scrap materials from this job were collected and sold on June 6, 19X7, for $267 in cash.

Instructions Give the general journal entry to record the sale in each of the following cases. Also indicate which subsidiary records would be affected.

1. Sales proceeds to be treated as income.

2. Sales proceeds to be treated as a recovery from the specific job.

3. Sales proceeds to be treated as a reduction of manufacturing overhead.