A Merchandiser Uses a Perpetual Inventory System

question 275

Multiple Choice

A merchandiser uses a perpetual inventory system.The beginning Owner,Capital balance of the merchandiser was $99,000.During the year,Sales Revenue amounted to $75,000,Cost of Goods Sold was $32,000,and all other expenses totaled $10,000.Owner withdrawals were $21,000.There were no new capital contributions during the year.The last step in the closing process would include ________.

• A) a debit to Income Summary for $33,000
• B) a credit to Income Summary for $21,000
• C) a debit to the Owner, Capital account for $33,000
• D) a debit to the Owner, Capital account for $21,000

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Definitions:

Chronic Obstructive Pulmonary Disease

A group of lung conditions that cause breathing difficulties, including emphysema and chronic bronchitis.

Poor Appetite

Reduced desire to eat, which can be a symptom of various medical conditions or may occur as a side effect of certain treatments.

Weight Loss

The reduction of total body mass due to a loss of fluid, body fat, or lean mass, often pursued for health, fitness, or aesthetic reasons.

Common Cold

A viral infectious disease of the upper respiratory tract that primarily affects the nose, throat, sinuses, and larynx.