A Merchandiser Reports Sales Revenue of $25,000 and Sales Discounts

question 168

Multiple Choice

A merchandiser reports sales revenue of $25,000 and sales discounts forfeited of $1,500.The merchandiser uses a perpetual inventory system.The first entry in the closing process would include ________.

• A)a credit to Income Summary for $26,500
• B)a credit to Income Summary for $25,000
• C)a debit to Income Summary for $26,500
• D)a debit to Income Summary for $25,000

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Definitions:

Aggression

Behavior aimed at causing harm or pain to others, which can be physical or verbal, and motivated by various factors including anger or frustration.

Life Instincts

The drive for ensuring survival of the individual and the species by satisfying the needs for food, water, air, and sex.

Death Instincts

The unconscious drive toward decay, destruction, and aggression.

Preconscious

Pertains to thoughts and feelings not immediately in conscious awareness but can be readily brought to consciousness.