Which of the following accounts has a credit balance and is closed into Income Summary in the closing entries of a merchandising business?
A) Sales
B) Freight in
C) Depreciation Expense, Building
D) Capital
E) Drawings

Question

Quizplus · Accepted Answer

Sales account has a credit balance and is closed into Income Summary in the closing entries of a merchandising business. Freight in and Depreciation Expense, Building are expense accounts with debit balances and are closed into Income Summary. Capital and Drawings are owner's equity accounts and are not closed into Income Summary.

Which of the Following Accounts Has a Credit Balance and Is