Closing entries for a manufacturing firm include all of the following except:

Question

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Closing entries for a manufacturing firm typically involve transferring all manufacturing cost accounts to the Manufacturing Summary (A), closing the Manufacturing Summary to the Income Summary (C), and transferring all Revenue and Expense account balances to the Income Summary (D). However, closing the Income Summary to Net Income (B) is not a closing entry; instead, the balance of the Income Summary is transferred to Retained Earnings or the appropriate capital account.

Closing Entries for a Manufacturing Firm Include All of the Following