The income summary account has debits of $85,000 and credits of $75,000. The company had which of the following:
A) Net income of $10,000.
B) Net income of $160,000.
C) Net loss of $10,000.
D) Net loss of $160,000.

Question

Quizplus · Accepted Answer

The income summary account shows a net loss when debits exceed credits. Here, debits ($85,000) are greater than credits ($75,000) by $10,000, indicating a net loss of $10,000.

The Income Summary Account Has Debits of $85,000 and Credits