Question

Presented below is information related to Blue Corporation for the month of January 2020.

Cost of goods sold		$208,700		Salaries and wages expense		$55,050
Delivery expense		6,400		Sales discounts		8,470
Insurance expense		12,400		Sales returns and allowances		12,180
Rent expense		20,510		Sales revenue		355,100

Prepare the necessary closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	Jan. 31	enter an account title to close revenue accounts on January 31	enter a debit amount	enter a credit amount
		enter an account title to close revenue accounts on January 31	enter a debit amount	enter a credit amount
		(To close revenue accounts)
2.	Jan. 31	enter an account title to close expense accounts on January 31	enter a debit amount	enter a credit amount
		enter an account title to close expense accounts on January 31	enter a debit amount	enter a credit amount
		enter an account title to close expense accounts on January 31	enter a debit amount	enter a credit amount
		enter an account title to close expense accounts on January 31	enter a debit amount	enter a credit amount
		enter an account title to close expense accounts on January 31	enter a debit amount	enter a credit amount
		enter an account title to close expense accounts on January 31	enter a debit amount	enter a credit amount
		enter an account title to close expense accounts on January 31	enter a debit amount	enter a credit amount
		enter an account title to close expense accounts on January 31	enter a debit amount	enter a credit amount
		(To close expense accounts)
3.	Jan. 31	enter an account title to close net income / (loss) on January 31	enter a debit amount	enter a credit amount
		enter an account title to close net income / (loss) on January 31	enter a debit amount	enter a credit amount

Answer 1

Income Statement
Sale revenue	355,100
Sales discount	-8,470
Sales returns and allowances	-12,180
Net sales		$334,450
Cost of goods sold		-208,700
Gross profit		$125,750
Operating expenses:
Delivery expense		-6,400
Insurance expense		-12,400
Rent expense		-20,510
Salaries and wages expense		-55,050
Net Income		$31,390

No.	Date	Account Titles and Explanation	Debit	Credit
1	Jan. 31	Sales revenue	$355,100
		Income Summary		$355,100
		( To close revenue accounts)
2	Jan. 31	Income Summary	$323,710
		Cost of goods sold		$208,700
		Delivery expense		$6,400
		Insurance expense		$12,400
		Rent expense		$20,510
		Salaries and wages expense		$55,050
		Sales discount		$8,470
		Sales return and allowances		$12,180
		( To close expense accounts)
3	Jan. 31	Income summary	$31,390
		Retained earnings		$31,390
		( To close income summary)

Kindly comment if you need further assistance.

Thanks‼!