At the end of the period, the balance of the Accounts Receivable account is closed to the Income Summary account.

Name: At the end of the period, the balance of the Accounts Receivable account is closed to the Income Summary account.
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The balance of the Accounts Receivable account is not closed to the Income Summary account because Accounts Receivable is an asset account and remains open to track the amounts owed by customers over time. Income Summary is used to close revenue and expense accounts.

At the End of the Period, the Balance of the Accounts