A merchandiser had sales returns and allowances of $300,sales discounts of $700,cost of goods sold of $14,000,and all other expenses of $4,400.The merchandiser uses a perpetual inventory system.The second entry in the closing process would include ________.
A)a debit to Income Summary for $19,400
B)a credit to Income Summary for $18,400
C)a debit to Income Summary for $4,400
D)a debit to Income Summary for $18,400

Question

Quizplus · Accepted Answer

A)Second entry in closing process relates to closing of expense accounts and other temporary accounts with a debit balance.
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A Merchandiser Had Sales Returns and Allowances of $300,sales Discounts