In preparing closing entries for a merchandising company the Income Summary account will be credited for the balance of
A) sales revenue.
B) inventory.
C) sales discounts.
D) freight-out.

Question

Quizplus · Accepted Answer

The Income Summary account is used to summarize the revenue and expenses for the period, and the balance in the account represents the net income or loss for the period. As a merchandising company earns sales revenue, this amount is credited to the Income Summary account.

In Preparing Closing Entries for a Merchandising Company the Income