The closing entries will include a __ to the Sales account.

The closing entries will include a __ to the Sales account.

• A. Credit
• B. Debit
• C. Transfer
• D. Zero

Answer: (B)

Closing entries move the balances of temporary accounts to equity, bringing those accounts to zero. Sales is a revenue account and normally has a credit balance. To close it, you debit the Sales account and credit Income Summary (or Retained Earnings). Debiting reduces the credit balance to zero, which is exactly how revenue accounts are cleared at year end. The other options don’t fit: a credit would leave the revenue balance unchanged or increased, a transfer isn’t the standard closing action, and zero wouldn’t actually close the account.

Closing entries move the balances of temporary accounts to equity, bringing those accounts to zero. Sales is a revenue account and normally has a credit balance. To close it, you debit the Sales account and credit Income Summary (or Retained Earnings). Debiting reduces the credit balance to zero, which is exactly how revenue accounts are cleared at year end. The other options don’t fit: a credit would leave the revenue balance unchanged or increased, a transfer isn’t the standard closing action, and zero wouldn’t actually close the account.