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DochEvi [55]
1 year ago
5

In the closing process, ______ are zeroed out by crediting each account and ______ are zeroed out by debiting each account.

Business
1 answer:
sashaice [31]1 year ago
4 0

In the closing procedure, expenses and dividends are zeroed out by crediting each account, and incomes are zeroed out by debiting each account.

<h3>What is the objective of the closing process?</h3>

One purpose of closing admissions is to communicate net income or net loss for the period to Retained Earnings. A second objective is to "zero out" all temporary accounts (revenue accounts, expense accounts, and Dividends) so that they begin each new period with a zero balance.

The statement of cash flows must be prepared last because it takes data from all three previously prepared financial statements.

To learn more about the closing procedure visit the link

brainly.com/question/13171423

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Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable
Thepotemich [5.8K]

Answer: $136,375

Explanation:

Going by the collections pattern of the company, there will be collections for 3 months in December being October, November and December.

December collections will be:

= (50% * December credit sales) + (30% * November Credit sales) + (15% * October credit sales) + December cash sales

December credit sales = 75% * 130,000 = $97,500

November credit sales = 75% * 170,000 = $127,500

October credit sales = 75% * 150,000 = $112,500

December collections are:

= (50% * 97,500) + (30% * 127,500) + (15% * 112,500) + (25% * 130,000)

= $136,375

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The correct answer would be D. You're Welcome!! <span />
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