All revenue accounts are have a normal credit balance. Hence, when revenue accounts are closed, income summary is credited and revenue account is debited.
The following entry will be made to close Laundry Service Revenue:
General Journal | Debit | Credit |
Service revenue | $5,720 | |
Income summary | $5,720 |
Second option is correct.
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The following information is from the Income Statement of the Sunland Laundry Service: Revenues Service Revenues...
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