Dad's Bottling Company often has bottles that do not meet customer specifications although it does ...

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 into finished goods inventory for later sale; 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.