Central Company has sales of $10,000 and expenses of $4,000. Which of the follow
ID: 2448503 • Letter: C
Question
Central Company has sales of $10,000 and expenses of $4,000. Which of the following is the correct closing entry?
Debit retained earnings, debit expenses and credit sales.
Credit retained earnings, credit expenses and debit sales.
Debit expenses and credit sales.
Credit retained earnings, debit expenses and credit sales.
Debit retained earnings, debit expenses and credit sales.
Credit retained earnings, credit expenses and debit sales.
Debit expenses and credit sales.
Credit retained earnings, debit expenses and credit sales.
Explanation / Answer
Ans) Credit retained earnings, credit expenses and debit sales.
Sales $ 10,000 To Retain earing account $ 6,000 To Expenses account $ 4,000 (Being Closing entry)