Question

The closing entry for the Salaries Expense account includes a debit to:

A. Retained Earnings and a credit to Salaries Expense.
B. Salaries Expense and a credit to Net Income
C. Salaries Expense and a credit to Retained Earnings
D. Net Income and a credit to Salaries Expense

Answer 1

The closing entry for the Salaries Expense account includes a debit to Salaries Expense and a credit to Net Income.

Step-by-step explanation:

The correct answer is B. Salaries Expense and a credit to Net Income.

The closing entry for the Salaries Expense account records the accumulated balance of the account at the end of an accounting period. In this closing entry, the Salaries Expense account is debited to transfer the balance to the Net Income account, and the Net Income account is credited to summarize the total income for the period.

By debiting the Salaries Expense account, the entry reduces its balance to zero and transfers the expense to the Net Income account. This ensures that the expenses are properly accounted for and reflected in the calculation of the final net income.