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ContentClose Expense AccountsComments On Closing EntriesClosing Entries: Example
If the Income Summary has a debit balance, the amount is the company’s net loss. The Income Summary will be closed with a credit for that amount and a debit to Retained Earnings or the owner’s capital account. Next, if the Income Summary has a credit balance, the amount is the company’s net income.
No matter what kind of inventory a company has, that inventory has value. In this lesson, we’ll talk about valuing inventory using the lower of cost or market rule. You will learn what they […]