Sales revenue of a merchandiser amounted to $20,000, sales returns and allowances amounted to $2,500, and sales discounts of $700. The merchandiser uses a perpetual inventory system. The first entry in the closing process would include:
A)a credit to Income Summary for $20,000.
B)a credit to Income Summary for $17,500.
C)a debit to Income Summary for $2,500.
D)a debit to Income Summary for $19,300.

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The Answer of Sales revenue of a merchandiser amounted to $20,000, sales returns and allowances amounted to $2,500, and sales discounts of $700. The merchandiser uses a perpetual inventory system. The first entry in the closing process would include:
A)a credit to Income Summary for $20,000.
B)a credit to Income Summary for $17,500.
C)a debit to Income Summary for $2,500.
D)a debit to Income Summary for $19,300.

Sales Revenue of a Merchandiser Amounted to $20,000, Sales Returns