Regarding the four-step closing process under the periodic inventory system,________.
A) Purchase Returns and Allowances and Purchase Discounts accounts are closed with a credit via the Income Summary account
B) Sales Revenue is closed with a credit via the Income Summary account
C) the beginning Merchandise Inventory, Purchases, and Freight In are closed with a debit via the Income Summary account
D) the ending merchandise inventory balance must be recorded as a debit via the Income Summary account

Question

Quizplus · Accepted Answer

In the periodic inventory system, the ending merchandise inventory is recorded as a debit to reflect the cost of goods available for sale, which is then closed to the Income Summary account.

Regarding the Four-Step Closing Process Under the Periodic Inventory System,________