A Company Had $80 000 of Sales Revenue and $75

question 6

Multiple Choice

A company had $80 000 of Sales revenue and $75 000 of Expenses. Which of the following would be the first of three year- end closing entries?

• A)Debit Expenses $75 000 and credit Income summary $75 000.
• B)Debit Income summary $5 000 and credit Retained earnings $5 000.
• C)Debit Revenues $80 000 and credit Income summary $80 000.
• D)Debit Retained earnings $5 000 and credit Income summary $5 000.