Dad's Bottling Company Often Has Bottles That Do Not Meet

question 1

Essay

Dad's Bottling Company often has bottles that do not meet customer specifications although it does not allow for spoilage. Some of the rejects are immediately crushed and recycled while others are held for future use in other jobs. During May the company had bottles costing $1,000 that were recycled and $1,600 worth of bottles that were placed in inventory for later use. These bottles were sold in June for $2,000.
Required:
Record the journal entries associated with the above activities. Assume saleable scrap items are returned to inventory when rejected during inspection.

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Definitions:

Chloroplast

The organelle found in plant cells and some algae that is responsible for photosynthesis.

Plant Cell

The basic structural and functional unit of plants, characterized by a cell wall, chloroplasts, and a large central vacuole.

Peptidoglycan

A complex polymer that forms a mesh-like layer outside the plasma membrane of most bacteria, providing structural support and shape.

Plasma Membrane

A thin, flexible barrier that surrounds a cell, regulating the movement of substances in and out of the cell.