The closing entry for revenue accounts includes a debit to Retained Earnings and a credit to all revenue accounts.

Question

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The correct closing entry for revenue accounts includes a debit to all revenue accounts and a credit to Retained Earnings. This is done to transfer the revenue earned during the period to Retained Earnings and zero out the revenue accounts in preparation for the next accounting period.

The Closing Entry for Revenue Accounts Includes a Debit to Retained