Quest Clothiers, makers of rugged outdoor wear, experiences abnormal spoilage when it uses substandard thread on some of its outerwear, resulting in burst seams. The cost of the spoilage is $20,000, which it records as follows:
|
Debit |
Credit |
|
|
Abnormal spoilage expense |
20000 |
|
|
Inventory |
20000 |