the closing entry for the salaries expense account includes a debit to:\n\na. net income and a credit to…
the closing entry for the salaries expense account includes a debit to:\n\na. net income and a credit to salaries expense.\nb. salaries expense and a credit to retained earnings.\nc. retained earnings and a credit to salaries expense.\nd. salaries expense and a credit to net income.
Answer
Brief Explanations:
When closing expense accounts (like Salaries Expense), we transfer their balances to Retained Earnings. Expense accounts have debit balances. To close them, we credit the expense account (Salaries Expense) and debit Retained Earnings. This is because expenses reduce net income, and ultimately reduce retained earnings.
Answer:
C. Retained Earnings and a credit to Salaries Expense.