Expense accounts are closed by crediting them and debiting Retained Earnings.

Name: Expense accounts are closed by crediting them and debiting Retained Earnings.
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Expense accounts are closed at the end of an accounting period by crediting the expense accounts and debiting Retained Earnings to transfer the expense balances to the equity section of the balance sheet, reflecting the reduction in retained earnings due to the expenses incurred.

Expense Accounts Are Closed by Crediting Them and Debiting Retained