If Scrap Is Reused as Direct Material Rather Than Sold

Multiple Choice

If scrap is reused as direct material rather than sold as scrap, which of the following would be the proper account?

A) Accounts Receivable is debited at its estimated net realizable value and then credited when the scrap is reused
B) Materials Control is debited at its estimated net realizable value and then credited when the scrap is reused
C) Manufacturing Overhead Control is debited at its estimated net realizable value and then credited when the scrap is reused
D) Work-in-Process Control is debited at its estimated net realizable value and then credited when the scrap is reused