In preparing closing entries for a merchandising company, the Income Summary account will be credited for the balance of
A) sales.
B) merchandise inventory.
C) sales discounts.
D) freight-out.

Question

Quizplus · Accepted Answer

The Income Summary account is used to summarize the revenue and expense accounts for the period. Since a merchandising company generates revenue from sales, the balance of the Income Summary account will be credited for the total sales for the period.

In Preparing Closing Entries for a Merchandising Company, the Income