Income Summary is debited in the entry which closes Sales Discounts.

Name: Income Summary is debited in the entry which closes Sales Discounts.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Income Summary is the account used to close all revenue and expense accounts at the end of the period. Sales Discounts is a contra-revenue account, which means it reduces the total revenue for the period. Therefore, when closing Sales Discounts, the amount is debited to Income Summary.

Income Summary Is Debited in the Entry Which Closes Sales