Question

The following accounts are closed to income summary with a credit entry (Select all that apply.)

a)sales revenue
b)depreciation expense
c)cost of goods sold
d)salaries expense

Answer 1

Sales Revenue is the only account listed that is closed with a credit entry to Income Summary; the rest are expense accounts and would be closed with a debit entry.

Step-by-step explanation:

The accounts that are closed to the Income Summary with a credit entry include revenue and income accounts. In this case, the correct options are:

• Sales Revenue: This is a revenue account that is credited during the year. When closing, it is debited to decrease the balance to zero and the credit goes to Income Summary.

Expense accounts such as depreciation expense, cost of goods sold, and salaries expense are closed with debit entries, not credit entries. These accounts have debit balances during the fiscal period because they represent costs. When closing, the accounts are credited to reduce the balance to zero and the debits go to Income Summary.