The Income Summary account is credited in the entry that closes

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The Income Summary account is used in the closing process to transfer the balances of revenue and expense accounts to it. The Income Summary account will then be used to determine the net income or loss for the period. If there is net income, it will be transferred to the Retained Earnings account with a credit, and if there is a net loss, it will be transferred with a debit. Therefore, the Income Summary account is credited in the entry that closes revenue accounts.

The Income Summary Account Is Credited in the Entry That