The Sales Revenue of a Merchandiser Amounted to $22,000,sales Returns

question 99

Multiple Choice

The sales revenue of a merchandiser amounted to $22,000,sales returns and allowances amounted to $2,500,and sales discounts amounted to $800.The merchandiser uses a perpetual inventory system.The first entry in the closing process would include ________.

• A)a credit to Income Summary for $22,000
• B)a credit to Income Summary for $19,500
• C)a debit to Income Summary for $2,500
• D)a debit to Income Summary for $21,200

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Definitions:

False Statement

An untrue assertion presented as a fact, intentionally or unintentionally, which could mislead or deceive others.

Promissory Statements

Brief declarations or assertions made with the intention of influencing the expectations or actions of others, often found in contracts or agreements.

Predictions

Forecasts or projections about future events or outcomes based on current data, trends, or analysis.

Fraud

Wrongful or criminal deception intended to result in financial or personal gain.