Which of the following accounts has a debit balance and is closed into Income Summary in the closing entries of a merchandising business?
A) Purchase Discounts
B) Drawings
C) Capital
D) Wages Expense
E) Interest Income

Question

Quizplus · Accepted Answer

Wages Expense has a debit balance and is closed into Income Summary in the closing entries of a merchandising business. Purchase Discounts and Interest Income have credit balances, while Drawings and Capital accounts are not closed into Income Summary.

Which of the Following Accounts Has a Debit Balance and Is