Sales Revenues Were $20,000,Sales Returns and Allowances Were $300,Sales Discounts

question 59

Multiple Choice

Sales revenues were $20,000,Sales returns and allowances were $300,Sales discounts were $700,Cost of goods sold were $12,000,and all other expenses totaled $4,500.The first closing entry would include which of the following line items?

• A) Credit to Income summary of $19,000
• B) Credit to Income summary of $20,000
• C) Debit to Income summary of $2,500
• D) Debit to Income summary of $16,500

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