A Merchandiser Has Sales Discounts Forfeited of $600,cost of Goods

question 253

Multiple Choice

A merchandiser has sales discounts forfeited of $600,cost of goods sold of $13,000,and other expenses of $4,100.The merchandiser uses a perpetual inventory system.The second entry in the closing process would include ________.

• A) a debit to Income Summary for $17,100
• B) a credit to Income Summary for $17,700
• C) a debit to Income Summary for $17,700
• D) a debit to Income Summary for $4,700

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Definitions:

Slavery

The most extreme form of social stratification, based on the ownership of people.

Earthly Suffering

Denotes the pain, hardship, and distress experienced by individuals or populations due to worldly circumstances, often contrasted with spiritual or existential concepts.

Ruling Class

The social class that controls the means of production in a society and, therefore, has power over governance and decision-making.

Heaven

In many religions, a paradisiacal place or state of existence after death where the faithful are rewarded.