A Merchandiser Had Sales Returns and Allowances of $300,sales Discounts

question 149

Multiple Choice

A merchandiser had sales returns and allowances of $300,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 $19,400
• 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

---

Definitions:

Latency

A period in psychosexual development in childhood, from around age five to puberty, characterized by a decrease in sexual urges and interests.

Psychosexual Stage

A concept in Freudian psychology that describes the stages of an individual's development from birth to adulthood in terms of the discovery and satisfaction of sexual desires.

Oral Stage

A phase in Freudian psychoanalytic theory occurring in the first year of life, where an infant's pleasure centers on the mouth during activities like tasting and sucking.

Thumb

The short, thick first digit of the human hand, set lower and apart from the other four and capable of being moved opposite to them.