Which account will be included in closing entries of both service and merchandising companies?
A) Sales
B) Cost of Merchandise Sold
C) Customer Refunds Payable
D) Estimated Inventory Returns

Question

Quizplus · Accepted Answer

Sales accounts are closed at the end of the accounting period in both service and merchandising companies to transfer their balances to the income summary or directly to the retained earnings account.

Which Account Will Be Included in Closing Entries of Both