To close the income summary account with a credit balance,debit the account for its balance and credit the drawing account.

Question

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To close the income summary account with a credit balance, you debit the account for its balance and credit the retained earnings account (for corporations) or the owner's capital account (for sole proprietorships), not the drawing account. The drawing account is used to record withdrawals by the owner, not to close the income summary account.

To Close the Income Summary Account with a Credit Balance,debit