The Entry to Close Sales Discounts and Sales Returns and Allowances

question 12

True/False

The entry to close Sales discounts and Sales returns and allowances results in a debit to Income summary.

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Definitions:

Total Debits

The sum total of all debit entries made in a company's accounting ledger during a specific period.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Net Loss

The result when a company's total expenses exceed its total revenues during a specific period, indicating a negative earnings performance.

Balance Sheet Credit

An entry on the right side of a balance sheet, indicating liabilities, equity, or income.