Cost of Goods Sold is credited during the closing process.

Name: Cost of Goods Sold is credited during the closing process.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cost of Goods Sold is an expense account, and during the closing process, all expense accounts are closed by transferring their balances to the Income Summary account, which is then closed to the Retained Earnings account. This transfer is done by crediting the expense accounts, including Cost of Goods Sold.

Cost of Goods Sold Is Credited During the Closing Process