The revenue account Fees Income is closed by:

Question

Quizplus · Accepted Answer

The revenue account Fees Income is closed by debiting Fees Income and crediting Income Summary. This is because Fees Income represents revenue earned during the accounting period, which needs to be transferred to the Income Summary account in order to calculate the net income or loss. By debiting Fees Income, we are reducing it to zero, and by crediting Income Summary, we are increasing the balance in that account by the same amount, which represents the total revenue earned during the period.

The Revenue Account Fees Income Is Closed By