Orlando Metals manufactures tin. During the process, a byproduct-scrap metal-is obtained and placed in stock. The estimated sales value of the scrap metal produced during the month of April is $2,000. Assume that the value of the by-product is treated as a reduction in production cost.
Make the journal entry for April to record the following:
a. Placing of the scrap metal in stock
b. Sale of one-half of the scrap metal for $850, on account