Which of the following journal entries would be required to close a salaries expense account?

Question

Quizplus · Accepted Answer

To close a salaries expense account, we need to debit the account for the total amount of the expenses and credit it for the same amount to reduce it to zero balance. Option B shows a debit to salaries expense account and credit to income summary account, which is used to transfer the balance of all expenses and revenues to the income summary account before transferring it to the retained earnings account. This process is known as closing entries and is performed at the end of the accounting period. Therefore, option B is the best choice to close the salaries expense account.

Which of the Following Journal Entries Would Be Required to Close