On Flex Company's worksheet,the revenue account had a normal balance of $3,200.The entry to close the account would include a:
A)debit to Cash for $3,200.
B)credit to Income Summary for $3,200.
C)debit to Capital for $3,200.
D)credit to Revenue for $3,200.

Question

Quizplus · Accepted Answer

The normal balance of a revenue account is a credit balance, so to close the account, we need to debit the revenue account for its balance and credit the Income Summary account for the same amount. Therefore, the correct entry to close the revenue account would be a credit to Income Summary for $3,200 (option B).

On Flex Company's Worksheet,the Revenue Account Had a Normal Balance