Recording a sale of scrap. The Gibson Manufacturing Company applies the proceeds from the sale of scrap against the cost of production. On October 15, 19X8, scrap was sold on credit for $782.

Instructions Prepare a general journal entry to record the sale of the scrap in each of the following cases. Use the account names in your textbook.

1. The firm credits the income from the sale of scrap to Job 484, from which it was derived.

2. The firm credits the income from the sale of scrap to the Manufacturing Overhead Control account for the Fabricating Department, where the scrap originated.