To continue with the preceding example, Quest Clothiers sells a group of garments that were subject to abnormal spoilage, in the amount of $2,000. Quest rarely experiences abnormal spoilage, and so prefers to account for the sale as a one time event, electing to net it against the cost of spoilage with the following entry:
|
Debit |
Credit |
|
|
Cash |
2000 |
|
|
Abnormal spoilage expense |
2000 |