If Income Summary has a credit balance after revenues and expenses have been closed to it, the closing entry for Income Summary will include a

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If Income Summary has a credit balance, it means that the company's total revenues exceeded its total expenses. The credit balance in Income Summary represents the net income for the period. The closing entry for Income Summary will transfer this net income to Retained Earnings, a component of equity. Since Retained Earnings has a credit normal balance, a credit entry is required to increase its balance. Therefore, the closing entry for Income Summary will include a credit to Retained Earnings account. The other options are incorrect as they do not reflect the proper accounting treatment.

If Income Summary Has a Credit Balance After Revenues and Expenses