A merchandiser had sales returns and allowances of $300, sales discounts of $700, cost of goods sold of $12,000, and all other expenses of $4,500. The merchandiser uses a perpetual inventory system. The second entry in the closing process would include:
A)a debit to Income summary for $17,500.
B)a credit to Income summary for $16,500.
C)a debit to Income summary for $4,500.
D)a debit to Income summary for $16,500.

Question

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The Answer of A merchandiser had sales returns and allowances of $300, sales discounts of $700, cost of goods sold of $12,000, and all other expenses of $4,500. The merchandiser uses a perpetual inventory system. The second entry in the closing process would include:
A)a debit to Income summary for $17,500.
B)a credit to Income summary for $16,500.
C)a debit to Income summary for $4,500.
D)a debit to Income summary for $16,500.

A Merchandiser Had Sales Returns and Allowances of $300, Sales