A merchandiser reports sales revenue of $25,000 and sales discounts forfeited of $1,500.The merchandiser uses a perpetual inventory system.The first entry in the closing process would include ________.
A)a credit to Income Summary for $26,500
B)a credit to Income Summary for $25,000
C)a debit to Income Summary for $26,500
D)a debit to Income Summary for $25,000

Question

Quizplus · Accepted Answer

Sales revenue of $25,000 plus sales discounts forfeited of $1,500 equals $26,500, which should be credited to Income Summary to close the revenue accounts.

A Merchandiser Reports Sales Revenue of $25,000 and Sales Discounts