Question

the retained earnings account has a credit balance what is the correct closing entry for the expense accounts

Answer 1

Answer: A. Debit Income Summary $41,300; credit Expense accounts $41,300.

Step-by-step explanation:

The Income summary account allows for closing entries to be done related to the company income. Revenue is to be credited to the account so that it increases at the end of the period.

Expenses are to be debited to reflect that they are reducing the balance on the Income summary account and should be credited to the expenses account to show that the expenses are being transferred from the expense account to the income summary account.