Recording a sale of scrap. The Flores Motor Corporation manufactures various types of electric motors on special order. Scrap metal 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 748 was in production during the month of July 19X8. Scrap materials from this job were collected and sold on August 10 for $714 in cash.

Instructions Give the general journal entry to record the sale for cash 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.