Which Account Will Be Included In Closing Entries Of Both Service And Merchandising Companies?
Which Account Will Be Included In Closing Entries Of Both Service And Merchandising Companies?. Sales, purchases returns and allowances, purchases discounts b. The income summary is used to transfer the balances of temporary accounts to retained earnings, which is a permanent account on the balance sheet.
The closing entry will debit both interest revenue and service revenue, and credit income summary. Purchases, sales discounts, sales returns and. The income summary is used to transfer the balances of temporary accounts to retained earnings, which is a permanent account on the balance sheet.