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The following information is from the Income Statement of the Sunland Laundry Service: Revenues Service Revenues Expenses $57

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Answer #1

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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