Question

Note that because the Manufacturing Overhead account has a debit balance, closing the account requires_________.

Answer 1

Note that because the Manufacturing Overhead account has a debit balance, closing the account requires credit entry

Step-by-step explanation:

The question relates to the accounting process of closing accounts at the end of an accounting period. Since the Manufacturing Overhead account has a debit balance, closing the account requires a credit entry for the respective amount.

This credit entry will serve to balance the account, moving its balance to zero. In practice, this credit would be included in the journal entry that transfers the debit balances of all temporary accounts, like Manufacturing Overhead, to permanent accounts, usually through the Income Summary account.