The entry to close Sales Discounts will include a debit to Income Summary.

Name: The entry to close Sales Discounts will include a debit to Income Summary.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When closing the Sales Discounts account at the end of the accounting period, a debit is made to Income Summary to adjust for the amount of discounts given to customers. This reduces the overall revenue for the period and reflects the true amount of sales earned by the company.

The Entry to Close Sales Discounts Will Include a Debit