The Income Summary account has a credit balance of $25,000 after the revenue and expense accounts have been closed.Which of the following is to be credited to close the Income Summary account?
A)Dividends
B)Sales Revenue
C)Cost of Goods Sold
D)Retained Earnings

Question

Quizplus · Accepted Answer

The Income Summary account's credit balance indicates a net income, which should be transferred to Retained Earnings to close the account.

The Income Summary Account Has a Credit Balance of $25,000