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Record the transaction as increase in revenue or decrease

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Question - 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 manufacturer; 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?

Reference no: EM132161477

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