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

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Definitions:

Modifications

Changes or alterations made to a product or service, often aimed at enhancing its performance, appearance, or functionality.

Budgets

Financial plans for a defined period, often one year, outlining projected revenue and expenditure.

Objectives

General goals set by a business or individual striving to achieve through its operations.

Forecasts

Predictions or estimates about future events, trends, or outcomes, often based on historical data and analysis, used in business planning and decision-making.