Scenario: Assume that a manufacturing company usually pays a waste company (by the pound to haul away manufacturing waste. Recently, a landfill gas company offered to buy a small portion of the waste for cash, saving the manufacturing facility a portion of its disposal costs and providing it with proceeds from the disposal.
The sale of manufacturing waste is not a primary business activity of the manufacture; however, it will now result in an inflow of cash.
Which is more appropriate-classifying this transaction as an increase in revenue, a decrease in expense or as a gain?
Analysis-Record the transaction as increase in revenue or decrease in expense? alternatively, should the transaction be recorded as a gain?
Attachment:- Scenario 3.rar