A Merchandiser Had Sales Returns and Allowances of $400,sales Discounts

question 157

Multiple Choice

A merchandiser had sales returns and allowances of $400,sales discounts of $700,cost of goods sold of $14,000,and all other expenses of $4,400.The merchandiser uses a perpetual inventory system.The second entry in the closing process would include ________.

• A)a debit to Income Summary for $19,500
• B)a credit to Income Summary for $18,400
• C)a debit to Income Summary for $4,400
• D)a debit to Income Summary for $18,400

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European Union

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International Financial Reporting Standards, a set of global accounting standards for preparing financial statements.

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