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A merchandiser uses a perpetual inventory system. The beginning Owner, Capital balance of the merchandiser was...

A merchandiser uses a perpetual inventory system. The beginning Owner, Capital balance of the merchandiser was $95,000. During the year, Sales Revenue amounted to $80,000, Sales Returns and Allowances were $1,300, Sales Discounts were $2,700, Cost of Goods Sold was $40,000, and all other expenses totaled $13,000. The company paid $24,000 in withdrawals to the owner. The last step in the closing process would include ________.

Group of answer choices

A. a debit to Income Summary for $57,000

B. a credit to Income Summary for $80,000

C. a debit to the Owner, Capital account for $20,000

D.a debit to the Owner, Capital account for $24,000

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Answer #1
The last step in the closing process is closure of owner's withdrawal account to owner's capital account.
The last step in the closing process would include a debit to the Owner, Capital account for $24,000
Option D is correct
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