the entry required to close the revenue accounts at the end of the period includes a\n\ndebit to income…

the entry required to close the revenue accounts at the end of the period includes a\n\ndebit to income summary for $37,000\n\ncredit to income summary for $38,300\n\ndebit to income summary for $38,200\n\ncredit to income summary for $37,000

the entry required to close the revenue accounts at the end of the period includes a\n\ndebit to income summary for $37,000\n\ncredit to income summary for $38,300\n\ndebit to income summary for $38,200\n\ncredit to income summary for $37,000

Answer

Brief Explanations:

When closing revenue accounts, revenue accounts have a credit - normal balance. To close them, we debit the revenue accounts and credit the Income Summary account for the total amount of revenue. Since revenue is being transferred to Income Summary, we credit Income Summary. But we don't know the actual revenue amount from the problem statement. Assuming the relevant revenue amount is $37,000, we would credit Income Summary for $37,000.

Answer:

E. credit to Income Summary for $37,000