Which of the following is the correct closing entry for sales income of $30 000?
A) Debit sales income $30 000; credit equity $30 000
B) Debit profit or loss summary account $30 000; credit sales income $30 000
C) Debit equity $30 000; credit sales income $30 000
D) Debit sales income $30 000; credit profit or loss summary account $30 000

Question

Quizplus · Accepted Answer

The correct closing entry for sales income is to debit the sales income account and credit the profit or loss summary account, effectively transferring the sales income to the profit or loss summary for the period.

Which of the Following Is the Correct Closing Entry for Sales